India’s exports rose by 2.14 percent to USD 36.27 billion in July while the trade deficit almost tripled to USD 30 billion during the month due to over 70 percent rise in crude oil imports, according to official data released on Friday.
Rising by 43.61 percent Imports touched USD 66.27 billion in the month compared to July 2021, the data showed.
In July 2021, the trade deficit was USD 10.63 billion.
As per the preliminary data released earlier this month, there is a 0.76 percent contraction in exports at USD 35.24 billion for July.
However, exports during April-July 2022-23 rose by 20.13 percent to USD 157.44 billion, while imports increased by 48.12 percent to USD 256.43 billion.
The trade deficit stood at USD 98.99 billion against USD 42 billion during April-July 2021-22.
Imports of crude and petroleum products during July this year were also up by 70.4 percent as compared to USD 12.4 billion in July 2021, and touched USD 21.13 billion.
Imports of coal, coke, and briquettes witnessed a twofold growth to USD 5.2 billion while that of vegetable oil rose 47.18 percent to USD 2 billion in July this year.
A decline of 43.6 percent to USD 2.37 billion compared to 4.2 billion in July 2021 was witnessed in Inbound shipments of gold.
Exports of engineering goods; petroleum products; gems and jewelry; and drugs and pharmaceuticals also contracted in July 2022 year-on-year.
Segments like petroleum products, leather, electronic goods, and coffee showed positive growth on the export front.
However, engineering, gems, jewelry, plastic, cashew, and carpet segments witnessed a fall.
According to the data, the estimated value of services export for July 2022 is USD 24.91 billion, exhibiting a positive growth of 28.69 percent year on year. Imports are estimated at USD 15.95 billion, a growth of 40.02 percent.
Federation of Indian Export Organisations President A Sakthivel speaks of signs indicating a possible slowdown in exports, with global inventories going high and the merchandise exports facing a triple whammy.
“There is again a shift in consumption from goods to the services with opening up of economies after Covid-19 pandemic; the inflation affecting all economies reducing the purchasing power and many economies entering the recession while some advanced ones already in recession,” he said.