In August, India’s exports decreased by 9.3% to $34.7 billion, driven by sluggish global demand
India’s merchandise exports fell by 9.3% to $34.7 billion in August, impacted by sluggish global demand and geopolitical issues, according to data from the commerce department.
In contrast, imports increased by 3.3% to $64.4 billion for the month, resulting in a trade deficit of $29.65 billion.
Commerce Secretary Sunil Barthwal noted that the significant slowdown in China, declining petroleum prices, the European recession, and challenges related to transportation and logistics have negatively influenced merchandise exports.
For the first three months of the financial year (April-June), India’s exports saw a 5.8% year-on-year growth, reaching $109.9 billion.
According to the World Trade Organization’s (WTO) April Global Trade Outlook and Statistics, the volume of global merchandise trade is expected to gradually rebound in 2024 and 2025 following a decline in 2023 as a result of the aftereffects of high energy prices and inflation in developed economies, especially in Europe.
It stated, “Specifically, we anticipate merchandise trade to expand by 2.6% and 3.3% in 2024 and 2025, respectively, following a 1.2% decline in 2023. The multinational trade organization issued a warning, stating that further price increases for food and energy could limit the scope of the trade rebound due to regional conflicts and geopolitical concerns.
