EXPORT STATISTICS - ECONOMY
News: Exports fell to six-month low in April on anemic demand
What is in the news?
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India’s merchandise
exports shrank 12.7% in April to a six month low of $34.66 billion but imports
fell by a sharper 14% to hit $49.90 billion, as per initial estimates.
Key takeaways from the news:
1. Cooling of trade deficit:
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The monthly goods trade
deficit cooled 17% in April to touch a 20month low of $15.24 billion, from
$18.35 billion a year earlier.
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Outbound shipments fell
17.3% from March’s $41.9 billion, which was the highest exports level since
June 2022.
2. Decreasing petroleum prices:
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Petroleum prices have
been relatively cooling and the impact is visible both on imports and exports.
This happened due to import of cheap oil from Russia which accounted for more
than 35% of the country's crude oil imports.
3. Non-oil items contribution:
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Year-on-year decline in
the merchandise trade deficit in April was driven
primarily by non-oil items, with the fall in crude oil prices partly
absorbed by higher volumes.
4. Contraction of core exports:
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Exports of non-petroleum products and non-gems and
jewelry, also known as core exports, contracted 9.2 per cent in April to
$25.76 billion.
Reasons for the decline in exports:
1. Faltering demand in key markets of
India like USA, UK, European Union.
2. A decline in commodity prices in foreign
markets triggered Indian exporters to reduce their exports.
3. Due to China's zero covid policy, India's
exports to that nation have been reduced significantly.
4. Due to Black Sea grain initiative, the global
supply chain has been restored.
Initiatives taken by the government to boost the
exports:
1. Champion services sector Initiative:
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12
Champion Services Sectors have been identified for
promoting and diversifying services exports by pursuing specific action plans.
2. Free trade agreements:
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Government is trying to
harvest more FTAs, as it will boost exports from India.
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Last year, India signed
FTAs with Australia and UAE.
3. Market Access Initiative scheme:
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The Market Access
Initiative (MAI) Scheme is a program initiated by the Government of India to
assist Export Promotion Councils, Trade Bodies, Commodity Boards, and other
organizations in promoting and facilitating exports from India.
4. Districts as export hub:
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Districts as Export Hubs
has been launched by identifying products with export potential in each
district, addressing bottlenecks for exporting these products and supporting
local exporters/manufacturers to generate employment in the district.