India’s Exports and Trade Deficit in September 2023

Introduction:

The Ministry of Commerce & Industry has released crucial data on India’s trade performance in September 2023. These figures provide a comprehensive overview of the nation’s exports, trade deficit, and growth trends across multiple sectors. In this article, we’ll delve into the key findings and their implications.

Detailed Analysis:

1. Exports in September 2023:

In September 2023, India’s merchandise exports stood at USD 34.47 billion, a slight dip compared to the USD 35.39 billion recorded in September 2022. These numbers offer valuable insights into the country’s trade activities during this period.

2. Imports in September 2023:

Concurrently, the merchandise imports for the same month were recorded at USD 53.84 billion, showing a significant decrease from the USD 63.37 billion recorded in September 2022. This data reflects the nation’s engagement in international trade.

3. Trade Deficit Projection:

One of the noteworthy projections is the improvement in trade deficit. It is expected to enhance by a remarkable 47% during April-September 2023, reaching USD 39.91 billion. This is compared to a deficit of USD 140.83 billion during the same period in 2022, marking a considerable improvement.

4. Non-Petroleum and Non-Gems & Jewelry Exports:

In a positive trend, exports in this category witnessed an increase of 1.86%, growing from USD 24.33 billion in September 2022 to USD 24.78 billion in September 2023.

5. Growth in Specific Sectors:

a. Engineering Goods: Exports in this sector experienced substantial growth of 6.8%, climbing from USD 8.34 billion in September 2022 to USD 8.91 billion in September 2023.

b. Marine Products: There was a 4.7% increase in marine product exports, reaching USD 0.75 billion in September 2023 compared to USD 0.72 billion in September 2022.

c. Electronic Goods: The electronic goods sector saw an impressive growth of 27.6%, with exports reaching USD 13.11 billion during April-September 2023 as opposed to USD 10.27 billion in the same period in 2022.

d. Ceramic Products & Glassware: This sector exhibited a remarkable growth of 50.5%, rising from USD 0.24 billion in September 2022 to USD 0.36 billion in September 2023.

e. Drugs and Pharma: The pharmaceutical sector continued to grow at a steady 9.0% in September 2023, with exports amounting to USD 2.39 billion, up from USD 2.19 billion.

f. Iron Ore: Iron ore exports recorded an extraordinary growth of 128% during April-September 2023, reaching USD 1.5 billion from USD 0.66 billion in April-September 2022.

6. Agricultural Exports: Agricultural exports continued to grow during April-September 2023 in various subsectors, including spices, fruits & vegetables, cereal preparations, oil meals, tobacco, oil seeds, coffee, and cashews.

7. Services Trade:

In the services sector, the estimated value of services exports for September 2023 was USD 29.37 billion, while services imports were recorded at USD 14.91 billion. These figures highlight the dynamics of India’s services trade.

8. Trade Balance:

For the month of September 2023, the trade balance stood at -4.92, indicating a trade deficit of USD 4.92 billion. However, this is a significant improvement compared to the trade deficit of USD 15.03 billion in September 2022.

Conclusion:

The Ministry of Commerce & Industry’s data provides a comprehensive snapshot of India’s trade scenario in September 2023. While merchandise exports experienced a slight decline, there was a considerable improvement in the trade deficit. The growth in various sectors, such as engineering goods, electronic goods, and iron ore, is particularly noteworthy. These insights are crucial for understanding the country’s economic performance and international trade activities. They also indicate areas of growth and potential concerns, which can be monitored as part of India’s trade strategy.

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Ministry of Commerce & Industry

India’s overall exports in September 2023 estimated at USD 63.84 Billion; Merchandise exports at USD 34.47 Billion in September 2023

Trade Deficit projected to improve by 47% during April-September 2023 at USD 39.91 Billion; Merchandise trade deficit also improves from USD 140.83 Billion during April-September 2022 to USD 115.58 Billion in April-September 2023

Non-petroleum and non-Gems & Jewellry exports register anincrease by 1.86% from USD 24.33 Billion in September 2022 to USD 24.78 Billion in September 2023

Engineering Goods exports record a growth of 6.8% from USD 8.34 Billion in September 2022 to USD 8.91 Billion in September 2023

Exports of Marine Products register an increase by 4.7% to USD 0.75 Billion in September 2023 as compared to USD 0.72 Billion in September 2022

Electronic Goods exports register a growth of 27.6% at USD 13.11 Billion during April-September 2023 as compared to USD 10.27 Billion in April-September 2022

Ceramic products & glassware exports grow by 50.5% from USD 0.24 Billion in September 2022 to USD 0.36 Billion in September 2023

Drugs and pharma exports continue to grow at 9.0% in September 2023 at USD 2.39 Billion from USD 2.19 Billion in

Iron Ore export record a growth of 128% during April- September 2023 at USD 1.5 Billion from USD 0.66 Billion in April-September 2022

Agricultural exports continue to grow during April -September 2023: Spices (1.35%), Fruits & Vegetables (10.67%), Cereal preparations & miscellaneous processed items (1.89%), Oil Meals (41.16%), Tobacco (7.6%), Oil seeds (23.47%), Coffee (3.43%), Cashew (0.31%)

Posted On: 13 OCT 2023 4:04PM by PIB Delhi

India’s overall exports (Merchandise and Services combined) in September 2023* is estimated to be USD 63.84 Billion, exhibiting a negative growth of (-) 1.20 per cent over September 2022. Overall imports in September 2023* is estimated to be USD 68.75 Billion, exhibiting a negative growth of (-) 13.67 per cent over September 2022.

Table 1: Trade during September 2023*

* Note: The latest data for services sector released by RBI is for August 2023. The data for September 2023 is an estimation, which will be revised based on RBI’s subsequent release. (ii) Data for April-September 2022 and April-June 2023 has been revised on pro-rata basis using quarterly balance of payments data.

Fig 1: Overall Trade during September 2023*

• India’s overall exports (Merchandise and Services combined) in April-September 2023 is estimated to exhibit a negative growth of (-) 2.97per cent over April-September 2022. Overall imports in April- September 2023 is estimated to exhibit a negative growth of (-) 10.14 per cent over April-September 2022.

Table 2: Trade during April-September 2023*

Fig 2: Overall Trade during April-September 2023*

MERCHANDISE TRADE

• Merchandise exports in September 2023 were USD 34.47 Billion, as compared to USD 35.39 Billion in September 2022.
• Merchandise imports in September 2023 were USD 53.84 Billion, as compared to USD 63.37 Billion in September 2022.

Fig 3: Merchandise Trade during September 2023

• Merchandise exports for the period April-September 2023 were USD 211.40 Billion as against USD 231.73 Billion during April-September 2022.
• Merchandise imports for the period April-September 2023 were USD 326.98 Billion as against USD 372.56 Billion during April-September 2022.
• The merchandise trade deficit for April-September 2023 was estimated at USD 115.58 Billion as against USD 140.83 Billion during April-September 2022.

Fig 4: Merchandise Trade during April-September 2023

• Non-petroleum and non-gems & jewellery exports in September 2023 were USD 24.78 Billion, compared to USD 24.33 Billion in September 2022.
• Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in September 2023 were USD 33.58 Billion, compared to USD 38.25 Billion in September 2022.

Table 3: Trade excluding Petroleum and Gems &Jewellery during September 2023

Note: Gems &Jewellery Imports include Gold, Silver & Pearls, precious & Semi-precious stones

Fig 5: Trade excluding Petroleum and Gems &Jewellery during September 2023

• Non-petroleum and non-gems & jewellery exports during April-September 2023 was USD 153.89 Billion, as compared to USD 160.25 Billion in April-September 2022.
• Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were USD 209.65 Billion in April-September 2023 as compared to USD 224.89 Billion in April-September 2022.

Table 4: Trade excluding Petroleum and Gems &Jewellery during April-September 2023

Note: Gems &Jewellery Imports include Gold, Silver & Pearls, precious & Semi-precious stones

Fig 6: Trade excluding Petroleum and Gems &Jewellery during April-September 2023

SERVICES TRADE

• The estimated value of services export for September 2023* is USD 29.37 Billion, as compared to USD 29.22 Billion in September 2022.
• The estimated value of services import for September 2023* is USD 14.91 Billion as compared to USD 16.27 Billion in September 2022.

Fig 7: Services Trade during September 2023*

• The estimated value of services export for April-September 2023* is USD 164.89 Billion as compared to USD 156.07 Billion in April-September 2022.
• The estimated value of services imports for April-September 2023* is USD 89.22 Billion as compared to USD 90.58 Billion in April-September 2022.
• The services trade surplus for April-September 2023* is estimated at USD 75.67 Billion as against USD 65.49 Billion in April-September 2022.

Fig 8: Services Trade during April-September 2023*

• For the month of September 2023, under merchandise exports, 12 of the 30 key sectors exhibited positive growth in September 2023 as compared to same period last year (September 2022). These include Iron Ore (8054.78%), Oil Meals (72.66%), Ceramic Products & Glassware (50.49%), Cotton Yarn/Fabs./Made-Ups, Handloom Products Etc. (27.39%), Meat, Dairy & Poultry Products (19.4%), Cereal Preparations & Miscellaneous Processed Items (17.65%), Tobacco (9.18%), Drugs & Pharmaceuticals (9.01%), Oil Seeds (8.77%), Carpet (7.51%), Engineering Goods (6.79%) and Marine Products (4.66%).
• During April-September 2023 electronic goods exports were recorded at USD 13.11 Billion as compared to USD 10.27 Billion during April-September 2022, registering a growth of 27.62 percent. Under merchandise imports, 20 out of 30 key sectors exhibited negative growth in September 2023. These include Silver (-89.94%), Cotton Raw & Waste (-87.68%), Fertilisers, Crude & Manufactured (-61.89%), Sulphur & Unroasted Iron Pyrites (-56.96%), Transport Equipment (-53.15%), Coal, Coke & Briquettes, Etc. (-33.39%), Vegetable Oil (-24.11%), Project Goods (-23.53%), Pearls, Precious & Semi-Precious Stones (-22.49%), Newsprint (-22.4%), Leather & Leather Products (-21.72%), Petroleum, Crude & Products (-20.32%), Wood & Wood Products (-14.71%), Organic & Inorganic Chemicals (-12.89%), Chemical Material & Products (-12.04%), Textile Yarn Fabric, Made-Up Articles (-8.29%), Metaliferrous Ores & Other Minerals (-4.44%), Iron & Steel (-3.25%), Machine Tools (-1.6%) and Pulp And Waste Paper (-0.83%).
• For April-September 2023, under merchandise exports, 13 of the 30 key sectors exhibited positive growth during April-September 2023 as compared to April-September 2022. These includeIron Ore (128.04%), Oil Meals (41.16%), Electronic Goods (27.62%), Oil Seeds (23.47%), Ceramic Products & Glassware (20.25%), Fruits & Vegetables (10.67%), Tobacco (7.6%), Drugs & Pharmaceuticals (5.02%), Coffee (3.43%), Cereal Preparations & Miscellaneous Processed Items (1.89%), Cotton Yarn/Fabs./Made-Ups, Handloom Products Etc. (1.83%), Spices (1.35%) and Cashew (0.31%).
• Under merchandise imports, 17 of the 30 key sectors exhibited negative growth in April-September 2023 as compared to April-September 2022. These include Silver (-88.58%), Cotton Raw & Waste (-62.9%), Sulphur & Unroasted Iron Pyrites (-48.62%), Coal, Coke & Briquettes, Etc. (-36.72%), Fertilisers, Crude & Manufactured (-36.25%), Pearls, Precious & Semi-Precious Stones (-25.88%), Organic & Inorganic Chemicals (-25.38%), Vegetable Oil (-23.33%), Petroleum, Crude & Products (-22.81%), Textile Yarn Fabric, Made-Up Articles (-19.62%), Leather & Leather Products (-15.14%), Wood & Wood Products (-12.99%), Fruits & Vegetables (-8.19%), Transport Equipment (-7.7%), Metaliferrous Ores & Other Minerals (-6.76%), Artificial Resins, Plastic Materials, Etc. (-6.37%), Newsprint (-1.39%).
• Silver imports slumped by89.94 percent from USD 1.06 Billion in September 2022 to USD 0.11 Billion in September 2023.
• Services exports is projected to continue to grow positively at 5.65 percent during April-September 2023 over April-September2022.
• India’s trade deficit has shown considerable decline in April-September 2023. Overall trade deficit for April-September 2023* is estimated at USD 39.91 Billion as compared to the deficit of USD 75.34 Billion during April-September 2022, registering a decline of (-) 47.03 percent. The merchandise trade deficit during April-September 2023 is USD 115.58 Billion compared to USD 140.83 Billion during April-September 2022, registering a decline of (-) 17.93 percent.

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