Exim: India’s merchandise trade deficit rises 39.6% on year in FY23
Virendra Pandit
New Delhi: India’s merchandise exports in 2022-23 increased 6 percent on year to USD 447.46 billion while imports jumped 16.5 percent to USD 714.24 billion, showing a trade deficit increasing by 39.6 percent to USD 266.78 billion as compared to FY22.
Curiously, the import of gold fell from USD 46.17 billion in FY22 to USD 35.02 billion in FY23.
India’s imports from Russia grew the highest on-year, at a rate of 396.44 percent, because of increased imports of crude in the wake of the Ukrainian war which started in February 2022. While India’s imports were worth USD 9.87 billion from Russia in FY21, they increased almost four times to USD 46.33 billion in FY22.
The country’s overall exports jumped to a whopping USD 770 billion, surpassing the annual target, the released government data showed on Thursday.
According to the Union Commerce Ministry, merchandise exports rose by over USD 100 billion in FY23 as India also recorded a 40 percent growth in the export of petroleum products.
India’s exports target for FY23 was USD 750 billion, which exceeded by nearly USD 20 billion, Commerce Secretary Sunil Barthwal said. In FY22, total exports worth USD 676 billion were recorded.
Exports for the services sector grew by 26.79 percent to USD 322.72 billion while imports rose 21.04 percent to USD 177.94 billion.
Petroleum exports saw a sharp spurt of 40 percent this financial year, rising from USD 67.47 billion to USD 94.52 billion. Others that topped the list in merchandise exports included electronic goods, rice, organic and inorganic chemicals, and drugs and pharmaceuticals.
However, exports in the categories of engineering goods, cotton/yarn/handloom products, plastic and linoleum, and iron ore as well as in the gems and jewelry sectors registered a marginal decline.
Other products witnessing a marginal decline in imports included medicinal and pharmaceutical products, pearls, precious and semi-precious stones, and pulses.
The imports of petroleum and crude oil products saw a steep rise from FY22’s USD 161.81 billion to USD 209.57 billion. Likewise, a jump was recorded in the imports of coal, coke, briquettes, and transport equipment.
