India's merchandise exports fall marginally to $33 bn in August

NEW DELHI: India's merchandise exports fell marginally to $33 billion in August 2022 as compared to $33.38 billion recorded in the same month last year, as per the government data released on Saturday.

The value of non-petroleum exports in August 2022 was $28.09 billion, registering a negative growth of 2.22 per cent over non-petroleum exports of $28.73 billion in August 2021, as per data released by the Ministry of Commerce and Industry.

The value of non-petroleum exports in April-August 2022-23 was $152.29 billion, an increase of 7.97 per cent over $141.05 billion in April-August 2021-22. The value of non-petroleum and non-gems and jewellery exports in August 2022 was $24.8 billion, registering a negative growth of 1.96 per cent over non-petroleum and non-gems and jewellery exports of $25.29 billion in August 2021.

The cumulative value of non-petroleum and non-gems and jewellery exports in April-August 2022-23 was $135.49 billion, an increase of 8.4 per cent over the cumulative value of non-petroleum and non-gems and jewellery exports of $124.99 billion in April-August 2021-22.

Amongst the major products, exports of Electronic goods (50.68 per cent), Rice (42.32 per cent), Organic and Inorganic chemicals (13.35 per cent) registered impressive growth during August 2022.

India's merchandise import in August 2022 was $61.68 billion, an increase of 36.78 per cent over $45.09 billion in August 2021. India's merchandise imports in April-August 2022-23 was $317.81 billion with an increase of 45.64 per cent over $218.22 billion in April-August 2021-22.

The value of non-petroleum imports was $44.07 billion in August 2022 with a positive growth of 23.63 per cent over non-petroleum imports of $35.65 billion in August 2021.

The cumulative value of non-petroleum imports in April-August 2022-23 was $218.44 billion, showing an increase of 32.02 per cent compared to non-oil imports of $165.46 billion in April -August 2021-22.

The value of non-oil, non-GJ (gold, silver & Precious metals) imports was $37.46 billion in August 2022 with a positive growth of 40.37 per cent over non-oil and non-GJ imports of $26.69 billion in August 2021. Non-oil, non-GJ (Gold, Silver & Precious Metals) imports in April-August 2022-23 was $184.98 billion, recording a positive growth of 37.59 per cent, as compared to non-oil and non-GJ imports of $134.44 billion in April-August 2021-22.

Reacting to the exports data, EEPC India Chairman Mahesh Desai said, 'for a number of global factors, growth in engineering goods exports has come down in the last few months. The decline in demand from China and recessionary trends in major economies in the West have contributed to the slowdown in exports.

The pace of growth also slackened due to export duty on certain steel products including stainless steel products." The preliminary trade data showed engineering goods exports declined 14.59 per cent year-on-year in August 2022 to $8.25 billion as against $9.66 billion in August 2021.

At this point, fair amount of uncertainty remains due to the looming recession in major economies in the wake of ongoing Russia-Ukraine conflict. Depending on the extent of recession, Indian engineering exporters would be impacted but it is likely to more hit the MSMEs which have grappled with back-to-back challenges such as the COVID crisis and the subsequent spike in raw material prices, Desai said.

Lower than expected GDP growth in April-June quarter of current fiscal has been partly attributed to external shocks. Considering this, the government could take further measures such as removing duty on steel products to boost engineering exports, he added.