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Trade Deficit Widens In October As Exports Fall

The trade gap widened to $26.91 billion in October, compared with $25.7 billion in September 2022.

<div class="paragraphs"><p>(Source: Freepik)</p></div>
(Source: Freepik)

India's trade deficit widened in October as exports saw a sharp fall amid a global growth slowdown.

The trade gap widened to $26.91 billion in October compared with $25.7 billion in September 2022, according to the Ministry of Commerce and Industry data.

  • Exports contracted 6.6% year-on-year to $29.8 billion.

  • Imports rose 5.7% to $56.7 billion.

  • On a month-on-month basis, exports contracted 16% in October, while imports contracted 7.3%.

Both the merchandise exports and imports moderated on a sequential basis between September and October, likely driven by a larger number of holidays related to the festive season, said Aditi Nayar, chief economist at ICRA.

The sequential trend in exports in October 2022 echoes what was recorded in November 2021, which had seen a later onset of the festive season, she said.

"As of now, we expect some rebound in exports and imports in November relative to October 2022, although it may not be as strong as the trend seen between November and December 2021, given the prevailing global demand concerns."

Key Highlights

  • Non-petroleum, non-gems and jewellery exports in October were at $21.7 billion, a fall of 16.9% year-on-year.

  • Non-petroleum, non-gems and jewellery imports were at $34.4 billion, a growth of 4.6% year-on-year.

Key Exports 

  • Engineering goods exports stood at $7.4 billion, down 21.3% year-on-year.

  • Petroleum product exports were at $4.8 billion, 11.3% lower than a year earlier.

  • Gems and jewellery exports were at $3.3 billion, 21.6% lower than the previous year.

  • Organic and inorganic chemical exports were at $2.1 billion, 16.4% lower than last year.

  • Drugs and pharmaceutical exports were at $1.9 billion, 9.2% lower compared to the previous year.

Key Imports

  • Petroleum, crude and product imports were up 29.1% over a year ago, at $15.9 billion.

  • Imports of coal, coke and briquettes were 4% lower than a year ago at $3.2 billion.

  • Electronic goods imports were at $6.2 billion, down 9.2% over the previous year.

  • Machinery, electrical and non-electrical goods were at $3.6 billion, up 2.7% over the previous year.

  • Gold imports stood at $3.7 billion, 27.5% lower than a year ago.