Exports Of Electronic Goods To Help Offset Slide In Growth Rate Of Trade

New Delhi, Dec 18 (KNN) India's resilience in the export of electronic goods, especially smartphones, and services sectors is anticipated to offset the overall decline in the growth rate of trade, Global Trade Research Initiative (GTRI) in its report said.

The economic think tank pointed out that despite global challenges, India's exports and imports of goods and services are likely to dip by 2.6 per cent to USD 1,609 billion in 2023 as against USD 1,651.9 billion in 2022.

"The decline can be attributed to weak global demand and India gradually losing its competitiveness in labour intensive sectors," GTRI Co-Founder Ajay Srivastava said adding exports of petroleum products may also fall by over 9 per cent to USD 86 billion.

The report said that India's merchandise exports may decline by 5.3 per cent to USD 429.4 billion in 2023 from USD 453.3 billion in 2022. Similarly, the imports could dip by 7 per cent to USD 670 billion this year as against USD 720.2 billion in 2022.

Services exports, on the other hand, are expected to rise by 10.5 per cent to USD 333.5 billion in 2023 as against USD 302 billion in 2022. Imports however may record a flat growth at USD 176.4 billion in 2023. 

The decline in India's merchandise exports mirrors the global trend of a 5 per cent decline (as per UNCTAD's Global Trade Update) and aligns with China's 5.2 per cent drop in merchandise exports during January-November 2023, it added.

The World Trade Organization (WTO) has forecast that the global merchandise trade volume would grow only by 0.8 per cent in 2023.

In 2023, sectors which are expected to register growth include, aviation turbine fuels, motor gasoline, smartphones, basmati rice, motor car-medium size, turbo-jets, and auto components.

Smartphone exports are expected to jump by about 93 per cent to USD 14 billion during the current calendar year as against USD 7.2 billion in 2022.

(KNN Bureau)