India’s exports declined by 16.65% to $29.78 billion in October 2022 in comparison to the same period a year ago, according to data released by the commerce ministry on Tuesday.
Meanwhile, the imports increased to $56.69 billion as against $53.64 billion in October 2021.
The main reason behind the contraction of exports is said to be the widening of the trade deficit in the merchandise sector. The deficit in this sector has increased by $1.2 billion to $26.91 billion.
It is worth noting that a decline in exports and an increase in imports widens the trade deficit, resulting in the devaluation of the domestic currency. It also negatively impacts the job market.
The exports grew by 12.55% to $263.35 during the months of April to October and the imports also grew by 33.12% to $436.81 billion.
As per the expert global inflation, the Ukraine-Russia war, and supply disruptions have badly impacted global economic growth resulting in low demand.
Exporters are hopeful of India’s export growth in the coming months, once the situation improves.