India's September exports decline, positive signs ahead

In September, India's exports faced a 2.6% decline year on year, amounting to $34.47 billion. Imports also witnessed a substantial contraction of 15% to reach $53.84 billion, compared to the figures from September 2022. Consequently, India's trade deficit hit a five-month low at $19.37 billion, marking a year on year reduction of over 30% from last year's $27.98 billion for the same period.

India's export figures have been decreasing monthly due to global economic challenges and recessionary tendencies in key export markets. However, Commerce Secretary Sunil Barthwal highlighted a positive aspect in September's trade data, with non-petroleum and non-gems & jewellery merchandise exports showing a 1.86% increase.

Barthwal expressed confidence in a reversal of the downward export trend, foreseeing positive growth in the remaining six months. He noted a drastic reduction in the year-on-year export gap, emphasizing optimism for future months. Weekly trends reported to the Ministry of Commerce for October have already shown positive signs.

In contrast, services exports saw a marginal rise, reaching $29.37 billion, while services imports experienced a notable decrease, falling from $16.27 billion in the previous September to $14.91 billion this year.