Despite a global demand slowdown, India’s total exports and imports of goods and services have exceeded $800 billion in the first half of 2023, aided by robust growth in the services sector, according to the Global Trade Research Initiative (GTRI). The report highlighted that exports of goods and services increased by 1.5% to $385.4 billion in the first six months of 2023, compared to $379.5 billion in the same period of 2022. Conversely, imports declined by 5.9% to $415.5 billion during the same six-month period.
Goods exports independently experienced an 8.1% decrease to $218.7 billion, while imports of goods contracted by 8.3% to $325.7 billion. On a positive note, services exports grew substantially by 17.7% to $166.7 billion, and services imports saw a 3.7% rise to $89.8 billion during the six-month period. The GTRI co-founder, Ajay Srivastava, explained that the decline in merchandise exports could be attributed to weak global demand and challenges in labor-intensive sectors. He cautioned about potential obstacles in the global trade outlook, citing factors like ongoing conflicts, high inflation, and financial uncertainty, but also predicted new subsidies and protectionist measures by the EU and USA.
Srivastava recommended India maintain its focus on enhancing product quality and supply chain competitiveness. He urged the country not to relinquish its policy flexibility, especially concerning new issues in free trade agreements and the Indo-Pacific Economic Framework for Prosperity. He also advised preparedness for targeted and precise retaliation against unilateral policy decisions and emphasized India’s past effectiveness in such responses. The report underscored that while a quarter of India’s exports showed positive growth in the first half of 2023, various challenges in the global trade landscape remain.
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