Trade deficit improves by 47% in April-September 2023, reaching $39.91 Billion

India’s economic landscape showcased notable shifts in trade dynamics for September 2023, with overall exports estimated at $63.84 billion, representing a slight downturn of -1.20% compared to the same period in 2022. Meanwhile, overall imports stood at $68.75 billion, reflecting a more pronounced decrease of -13.67% from September 2022.

In terms of merchandise trade, September 2023 witnessed merchandise exports totaling $34.47 billion, a minor dip from $35.39 billion in September 2022. Concurrently, merchandise imports for the same month reached $53.84 billion, notably lower than the $63.37 billion recorded in the previous year.

For the period spanning April to September 2023, merchandise exports amounted to $211.40 billion, down from $231.73 billion during April-September 2022. Correspondingly, merchandise imports for the same period were $326.98 billion, compared to $372.56 billion in the prior year. The merchandise trade deficit for April-September 2023 was estimated at $115.58 billion, down from $140.83 billion in April-September 2022.

Non-petroleum and non-gems & jewellery exports showed resilience, rising to $24.78 billion in September 2023, surpassing the $24.33 billion recorded in September 2022. Meanwhile, non-petroleum, non-gems & jewellery imports for September 2023 were at $33.58 billion, a decrease from the $38.25 billion in September 2022.

From April to September 2023, non-petroleum and non-gems & jewellery exports reached $153.89 billion, compared to $160.25 billion in the prior year. Imports for the same period were recorded at $209.65 billion, down from $224.89 billion in April-September 2022.

The services sector presented a mixed picture, with services exports valued at $29.37 billion in September 2023, up from $29.22 billion in September 2022. In contrast, services imports for September 2023 stood at $14.91 billion, a decrease from $16.27 billion in the same month of the previous year. For the April-September 2023 period, services exports reached $164.89 billion, compared to $156.07 billion in the same period of 2022. Meanwhile, services imports for April-September 2023 were $89.22 billion, down from $90.58 billion in the prior year. This contributed to a services trade surplus of $75.67 billion for April-September 2023, compared to $65.49 billion during the same period in 2022.

In September 2023, merchandise exports showed varied growth patterns. Notably, 12 of the 30 key sectors exhibited positive growth, including Iron Ore (8054.78%), Oil Meals (72.66%), Ceramic Products & Glassware (50.49%), Cotton Yarn/Fabs./Made-Ups, Handloom Products Etc. (27.39%), Meat, Dairy & Poultry Products (19.4%), Cereal Preparations & Miscellaneous Processed Items (17.65%), Tobacco (9.18%), Drugs & Pharmaceuticals (9.01%), Oil Seeds (8.77%), Carpet (7.51%), Engineering Goods (6.79%), and Marine Products (4.66%).

Electronic goods exports saw notable growth, registering a 27.62% increase, with exports amounting to $13.11 billion during April-September 2023, compared to $10.27 billion during April-September 2022.

Merchandise imports, on the other hand, encountered a mixed trajectory, with 20 out of 30 key sectors experiencing negative growth in September 2023. These sectors included Silver (-89.94%), Cotton Raw & Waste (-87.68%), Fertilisers, Crude & Manufactured (-61.89%), Sulphur & Unroasted Iron Pyrites (-56.96%), Transport Equipment (-53.15%), Coal, Coke & Briquettes, Etc. (-33.39%), Vegetable Oil (-24.11%), Project Goods (-23.53%), Pearls, Precious & Semi-Precious Stones (-22.49%), Newsprint (-22.4%), Leather & Leather Products (-21.72%), Petroleum, Crude & Products (-20.32%), Wood & Wood Products (-14.71%), Organic & Inorganic Chemicals (-12.89%), Chemical Material & Products (-12.04%), Textile Yarn Fabric, Made-Up Articles (-8.29%), Metaliferrous Ores & Other Minerals (-4.44%), Iron & Steel (-3.25%), Machine Tools (-1.6%), and Pulp And Waste Paper (-0.83%).

The period from April to September 2023 saw 13 of the 30 key sectors in merchandise exports exhibiting positive growth, including Iron Ore (128.04%), Oil Meals (41.16%), Electronic Goods (27.62%), Oil Seeds (23.47%), Ceramic Products & Glassware (20.25%), Fruits & Vegetables (10.67%), Tobacco (7.6%), Drugs & Pharmaceuticals (5.02%), Coffee (3.43%), Cereal Preparations & Miscellaneous Processed Items (1.89%), Cotton Yarn/Fabs./Made-Ups, Handloom Products Etc. (1.83%), Spices (1.35%), and Cashew (0.31%).

In the merchandise import category, 17 of the 30 key sectors experienced negative growth during April-September 2023, as compared to the same period in 2022. These sectors included Silver (-88.58%), Cotton Raw & Waste (-62.9%), Sulphur & Unroasted Iron Pyrites (-48.62%), Coal, Coke & Briquettes, Etc. (-36.72%), Fertilisers, Crude & Manufactured (-36.25%), Pearls, Precious & Semi-Precious Stones (-25.88%), Organic & Inorganic Chemicals (-25.38%), Vegetable Oil (-23.33%), Petroleum, Crude & Products (-22.81%), Textile Yarn Fabric, Made-Up Articles (-19.62%), Leather & Leather Products (-15.14%), Wood & Wood Products (-12.99%), Fruits & Vegetables (-8.19%), Transport Equipment (-7.7%), Metaliferrous Ores & Other Minerals (-6.76%), Artificial Resins, Plastic Materials, Etc. (-6.37%), and Newsprint (-1.39%).

Notably, silver imports registered a significant decrease of 89.94%, falling from $1.06 billion in September 2022 to $0.11 billion in September 2023.

Looking ahead, services exports are projected to continue their positive growth trend, with an estimated 5.65% increase during April-September 2023 over the same period in 2022.

Overall, India’s trade deficit has shown substantial improvement for April-September 2023. Overall trade deficit for April-September 2023* is estimated at USD 39.91 Billion as compared to the deficit of USD 75.34 Billion during April-September 2022, registering a decline of (-) 47.03 percent.