India's Exports Show Resilience Despite Global Uncertainties

New Delhi, Jan 22 (KNN) In the face of global economic uncertainties, India's exports of goods and services experienced a modest increase of 0.4 per cent, reaching USD 765.6 billion in 2023, according to data released by the Ministry of Commerce. 

Key sectors contributing to this growth included electronics, pharmaceuticals, cotton yarn, fabrics, and made-ups, along with ceramic products, meat, dairy, poultry products, fruits, vegetables, and information technology.

Breaking down the figures, goods exports saw a contraction of 4.71 per cent, totalling USD 431.9 billion, while services exports surged by 7.88 per cent to USD 333.8 billion. 

The dip in merchandise imports by 7 per cent, totalling USD 667.73 billion in 2023 compared to USD 720.2 billion in 2022, also contributed to the overall trade balance.

India's primary export destinations include the US, the UAE, the Netherlands, Bangladesh, the UK, and Germany. However, goods shipments face hurdles due to the Russia-Ukraine war, the Israel-Hamas conflict, and the Red Sea trade route crisis caused by Houthi attacks on cargo ships.

International trade experts warn that prolonged challenges may have significant implications for global trade.

The Global Trade Research Initiative (GTRI), an economic think tank, reported a 2.6 per cent decline in India's overall exports and imports, falling from USD 1651.9 billion in 2022 to USD 1609 billion in 2023. 

The negative trade balance reduced from USD 141.3 billion in 2022 to USD 75.2 billion in 2023.

Looking at the current fiscal year data, goods exports from April to December 2023 declined by 5.7 per cent to USD 317.12 billion. 

Imports also contracted by 7.93 per cent to USD 505.15 billion, resulting in a trade deficit of USD 188.02 billion in the first three quarters, compared to USD 212.34 billion in the same period in 2022.

(KNN Bureau)