India’s Exports Witness a 10.3% Decline to $34.98 Billion in May

15-06-2023 : According to recent government data, India’s exports experienced a significant decline of 10.3 percent year-on-year, amounting to $34.98 billion in May. Simultaneously, imports also contracted by 6.6 percent to $57.1 billion compared to $61.13 billion recorded in the same month the previous year.

The decline in exports indicates a challenging scenario for India’s international trade sector. The data highlights the impact of various factors such as global economic conditions, trade restrictions, and the ongoing COVID-19 pandemic, which have disrupted supply chains and dampened demand in several markets.

Commerce Secretary Sunil Barthwal acknowledged the prevailing headwinds in the global trade environment. These headwinds encompass a range of issues, including trade tensions between major economies, tariff disputes, and fluctuations in currency exchange rates, all of which have implications for India’s exports.

In response to the challenging circumstances, the Department of Commerce and the Department for Promotion of Industry and Internal Trade have initiated efforts to develop an effective exports strategy. This strategy aims to identify and prioritize 40 specific countries as potential export destinations. By focusing on these countries, the government intends to leverage existing trade agreements, explore new market opportunities, and strengthen economic ties with strategic partners.

The decline in imports also indicates a reduction in domestic demand for foreign goods during May. This decline could be attributed to factors such as reduced consumer spending, supply chain disruptions, and import restrictions implemented by the government to protect domestic industries and promote self-reliance.