In December 2022, India’s exports decreased by almost 12% to $34.5 billion, while its imports decreased by 3% to $58.2 billion, leading to an increase in the trade imbalance.
Sunil Barthwal, the secretary of commerce, told reporters that the decline, which was the fastest in two years, was caused by global headwinds because several nations are currently experiencing a slowdown as well as by the high base in December 2021, when exports of $39.3 billion were the third highest on record.
The growth of exports, which reached a record $422 billion during the previous fiscal year, has slowed recently. According to Barthwal, the commerce department has conducted a thorough examination and is concentrating on nations that are expanding more quickly, but for the time being, it is adhering to internal predictions of $470 billion for the year. “India’s exports continue to stand tall. Globally, recessionary trends are present. Therefore, we are up against many obstacles “The secretary continued, predicting that this year’s growth in service exports will set new records.
Services exports were officially reported by the commerce department to be at $27.3 billion, up 5% from the previous year, while imports rose by almost the same amount to $15.6 billion.
The two biggest items, engineering goods (down 12% to $9.1 billion) and oil products (27% lower at $4.9 billion), were the main contributors to the fall in December’s exports of goods. Electronics goods, which increased 37% to $2.3 billion, were the leading export item. A 75% drop in gold sales (to $1.2 billion), chemicals, and diamonds were the main contributors to the reduction in imports.