India has been experiencing a slowdown in exports due to poor global demand, but the scenario is changing. India’s trade deficit is declining rapidly and the exports are expected to see positive growth in the coming months, informed Commerce and Industry Minister Piyush Goyal. He said that countries in the world are facing a slowdown and global trade is relatively weak right now.
Given the challenging situation, high interest rates, and cut down in discretionary spending have led to a fall in the exports of readymade apparel and the gem and jewellery sector, the minister said adding lower petroleum prices have resulted in lower export numbers.
“All in all, trade continues to be robust, our trade deficit is falling rapidly. And India will continue to benefit significantly from our global outreach.”
When asked if he expects the country’s merchandise exports to come in positive growth from September, he said, “I do believe it is possible”.
India’s exports contracted by 15.88 per cent in July, the sixth straight month of decline, to USD 32.25 billion this year due to a global slowdown and a fall in shipments of key sectors like petroleum, and gems and jewellery.
Imports during the month also declined by 17 per cent, the eighth month of fall in a row, to USD 52.92 billion from USD 63.77 billion in July 2022. This led to a narrowing of the trade deficit to USD 20.67 billion against USD 25.43 billion in July 2022.
Talking about his bilateral meetings, the minister said that more and more countries are looking at expanding trade and business with India. “There is a lot of interest to invest in India,” he added.
