India’s trade balance improved considerably in April-May 2023 as the overall trade deficit (including merchandise and services trade deficit) for April-May of financial year 2023 shrunk to an estimated USD 13.28 billion as compared to USD 20.56 billion deficit recorded during April-May 2022, registering a decline of 35.41 per cent. India’s overall exports in April-May 2023 showed a negative growth of 5.48 per cent over April-May 2022 and overall imports a negative growth of 9.63 per cent in the corresponding months of financial year 2022, as per data from Ministry of Commerce and Industry on Thursday. In the last two years, India’s exports jumped from $500 billion to $767 billion in 2022-23.
The merchandise trade deficit for April-May 2023 came in at USD 37.26 billion as against USD 40.48 billion during April-May 2022. Merchandise exports registering value of USD 69.72 billion as against USD 78.70 billion during April-May 2022 while merchandise imports were USD 106.99 billion as against USD 119.18 billion during April-May 2022.
However, India’s trade deficit widened to USD 22.12 billion as global demand slowdown hit India’s merchandise exports for the month of May 2023 which fell 10.3 per cent to USD 34.98 billion and merchandise imports slipped 6.6 per cent to USD 57.10 billion. Exports grew USD 39.00 billion in May 2022 while imports were USD 61.13 billion in May 2022. President, Federation of Indian Exporters Organisation, A Sakthivel said that the sharp decline in the international demand situation has led to the fall in overall exports. “Major economies including US and China show downward trend in exports, along with the Eurozone entering into technical recession after the region shrank by 0.1 per cent in Q1 2023,” said Sakthivel. With this, exports show decline for consecutive four months, after a 12.7 per cent fall in April.
For the month of May 2023, India’s overall exports (merchandise and services) stands at USD 60.29 billion, which is a degrowth of 5.99 per cent over May 2022 and overall imports was estimated at USD 70.64 billion, exhibiting a yoy negative growth of 7.45 per cent.
Among the performers in May 2023, electronic goods export witnessed significant increase by 73.96 per cent in May 2023 as well as cumulatively in April-May 2023 by 48.06 per cent over the corresponding period last year. Agri exports registered robust growth with spices growing by 31.81 per cent in April-May 2023 over April-May 2022 while rice exports grew by 19 per cent and oil meals exports grew by 74.33 per cent. Ceramic products and glassware showed impressive growth with 17.36 per cent in May 2023 and cumulatively by 17.29 per cent in April-May 2023 over the corresponding period last year.