India's Merchandise Exports Stare Decline Amidst Global Economic Challenges

New Delhi, Mar 6 (KNN) During the first ten months of the current fiscal year, India witnessed a concerning trend in its merchandise exports, with four out of the top five categories experiencing a decline or stagnation, as reported by Mint citing commerce ministry data.

Engineering goods, constituting a substantial 25 per cent share of all exports in value terms, maintained a flat export value of USD 88 billion from April to January compared to the previous year.

Similarly, petroleum products, comprising 19 per cent of exports, saw a notable decline to USD 67.11 billion from USD 75.65 billion in the corresponding period.

Gems and jewellery exports faced a considerable downturn, dropping to USD 26.89 billion from USD 31.61 billion, while chemical exports experienced a decline to USD 22.64 billion, marking an 11.7 per cent decrease from the year-ago period.

The slowdown in these key sectors is attributed to various factors, including the global economic slowdown and a surge in domestic consumption.

Additionally, the reduction in discounts on Russian oil contributed to the decline in petroleum exports.

India's overall export values across all commodities declined to USD 351 billion during April-January from USD 366 billion a year ago, echoing the impact of the global economic downturn and tightening interest rates in Western nations.

Geopolitical tensions in regions like Ukraine and West Asia, coupled with disruptions in trade routes such as those in the Red Sea, have exacerbated the situation by driving up oil prices and transportation costs.

Consequently, India's export sector faces significant challenges ahead.

As India navigates these complexities, proactive measures and strategic adjustments will be vital to mitigate the adverse effects on its export-oriented industries and maintain competitiveness in the global market.

(KNN Bureau)