Exports jump 6.21% to $33.57 bn in Oct, trade deficit rises to $31.36 bn

India’s merchandise exports rose 6.21 per cent to $33.57 billion in October this year, even as the trade deficit touched a record high of $31.46 billion during the month, government data showed on Wednesday.

Imports increased by 12.3 per cent to $65.03 billion in the month under consideration due to a jump in gold imports.

Inbound shipments of gold rose by 95.5 per cent to $7.23 billion. Oil imports also increased by 8 per cent to $17.66 billion during the month.

The country’s trade deficit in goods in October last year stood at $26.31 billion. The deficit during October is the “highest” because of the largest import figures, Additional Secretary in the Commerce Ministry L Satya Srinivas said.

Cumulatively, exports during the April-October period this fiscal contracted by 7 per cent to $244.89 billion, while imports fell 8.95 per cent to $391.96 billion. The trade deficit during the seven-month period was $147.07 billion against $167.14 billion in the corresponding period last year.

Gold imports during the period rose 23 per cent to $29.5 billion, while crude oil imports dipped by 18.72 per cent to about $100 billion during April-October this fiscal.

Briefing reporters on the data, Commerce Secretary Sunil Barthwal said the trade numbers in October reflect ‘green shoots’ of recovery in outbound shipments. Exports are impacted due to the geopolitical situation and other risks like high inflation and economic slowdown in advanced economies; the Russia-Ukraine war; China-Taiwan and China US issues; and the Israel-Palestine war.

The country’s exports were in a negative zone during February-July. After a revision of numbers by the ministry, the shipments showed 3.88 per cent positive growth in August, but in September it contracted by 2.6 per cent.

Imports have turned positive after ten months of negative growth between December 2022 and September 2023.

According to the data, 22 of the 30 key sectors exhibited positive growth in October, including iron ore, meat, dairy and poultry products, pharma, electronic goods, carpet, plastic, marine and engineering goods. On the other hand, import sectors that recorded high growth in October include pulses (112.2 per cent), fruits and vegetables (53.4 per cent), non-ferrous metals (21.24 per cent) and electronics goods (26 per cent).

Further, as per the data, services exports in October are estimated at $28.7 billion compared to $25.3 billion a year ago. Imports stood at $14.32 billion against $13.51 billion. The estimated value of services exported in April-October 2023 was $192.65 billion against $181.37 billion in April-October 2022.

Moreover, India’s imports from Russia rose 64 per cent to $36.27 billion during the April-October period this fiscal on higher shipments of crude oil and fertiliser, according to the Commerce Ministry data.

With this, Russia has become India’s second-largest import source during the first seven months of this fiscal.

The imports were $22.13 billion during April-October 2022.

From a market share of less than 1 per cent in India’s import basket before the start of the Russia-Ukraine conflict, Russia’s share of India’s oil imports rose to over 40 per cent.

India, the world’s third-largest crude importer after China and the United States, has been buying Russian oil after some countries in the West shunned it as a means of punishing Moscow for invading Ukraine.

The ministry’s data showed that imports from China dipped marginally to $60.02 billion during the period against $60.26 billion in the year-ago period.

Similarly, imports from the US declined 16 per cent to $24.89 billion during the period under review from $29.56 billion last year. Imports from the UAE contracted 21 per cent to $24.91 billion during the period under review.