EXIM Trade figures for December 2023

The country's exports edged up 1 per cent to 38.45 billion US dollars in December 2023 while the trade deficit narrowed to a three-month low of 19.8 billion US dollars, official data released on showed.

The key export sectors that have recorded negative growth included petroleum products, ready-made garments of all textiles, chemicals, and leather products. Sectors which are in the positive zone include plastic, electronic goods, engineering items, and gems and jewellery during December 2023.

According to the data, the estimated value of services export has contracted to 27.88 billion US dollars, as compared to 31.19 billion US dollars in December 2022

Country’s Imports declined by 4.85 per cent to 58.25 billion US dollars in December last year due to a dip in crude oil shipments.

Crude oil imports declined by 22.77 per cent to about 15 billion US dollars during the month under review. However, gold imports jumped 156 per cent in December 2023 to 3 billion US dollars. Crude oil imports in April-December 2023-24 declined by about 19 per cent to  128.6 billion US dollars while gold imports surged by 26.64 per cent to about 36 billion US dollars in April-December 2023.

Exports during April-December this fiscal dipped by 5.7 per cent to 317.12 billion US dollars. Imports contracted by 7.93 per cent to  505.15 billion US dollars, leaving a trade deficit of 188.02 billion US dollars in the first three quarters as against  212.34 billion US dollars in April-December 2022.

Briefing reporters on the data, Commerce Secretary Sunil Barthwal said that despite a global slowdown, "we are in the positive zone and the trade deficit has also come down". The exports are struggling on account of demand slowdown in Western countries, besides geopolitical tensions. The Red Sea crisis will also hurt exports in the coming months as exporters are holding up consignments.

India's Merchandise exports have lingered in the last several months except for October. "The whole globe is facing an adverse condition. Globally the picture is quite bad, but India is doing well. We hope to beat the global trends in the January-March quarter also. Yes, we are waiting and watching what is happening in the Red Sea," he told reporters here and expressed confidence that the country's goods and services exports would cross last year's figure of 776 billion US dollars.

The Red Sea crisis would have an impact on exports on account of increase in transportation cost. The ministry is holding an inter-ministerial meeting to take stock of the situation.

The situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, has escalated due to attacks by Yemen-based Houthi militants. Due to these attacks, the shippers are taking consignments through the Cape of Good Hope, resulting in delays of almost 14 days and also higher freight and insurance costs.