Buoyed by the services sector, India’s exports rose 14% to a record $770 billion during the last financial year, while imports jumped to a new high of $892 billion, amid a slowdown in goods demand due to the global headwinds.
Latest data showed goods exports went up just under 6% to $447 billion, which is a new high but lower than what was expected at the start of the last financial year. Goods imports rose 16. 5% to $714 billion, resulting in a record trade deficit. However, exports decreased 6% to $38.4 billion in March, marking the second consecutive month of declines, while imports declined nearly 8% to $58.1 billion, marking the fourth consecutive month of declines. The expected trade deficit increased to $19.7 billion, marking the first change in four months.
Oil price declines caused a decrease in imports, according to commerce and industry minister Piyush Goyal, who also noted that challenging global economic conditions were placing pressure on goods exports. However, he took solace in the figures, noting that they were in line with the $772 billion prediction made for 2022–2023 when the complete services figures were still pending.
“GST collections are at a high, exports are at a record high, inflation has come within RBI’s comfort band, foreign exchange reserves are strong, and India is the fastest growing large economy. It reflects the mood of the nation,” he said, adding that record remittances of $100 billion and investment flows will keep the current account deficit under check.