Merchandise exports for the month of December fell by 12.2 percent to
$34.48 billion against $39.27 billion in the corresponding month of 2021.
In contrast, imports fell to $58.24 billion against $60.33 billionYoY.
Trade deficit increased to $23.76 billion against $21.10 billion YoY, but
it narrowed to the lowest level in eight months from $23.89 billion in
November. Overall, the foreign trade environment is not that encouraging.
There is no doubt that weak global demand has continued to weigh on India’s
exports. Majority of economists are anticipating a global recession in
2023. Geopolitical tensions, volatility in currencies, high inventories –
these are some major challenges our exporters are struggling with for quite
some time now, and unless this situation improves drastically, the coming
months would be extremely difficult for the sector.
The Budget is ahead, and it is an opportunity for the government to take
comprehensive cushioning measures for the sector. According to industry
watchers, this situation demands urgent steps to ensure easy liquidity at
competitive cost. Extension of ECLGS, IGST exemptionon freight on
exports, PCFC extension, notification of RoDTEP rates are some of the major
suggestions put forward by experts in this regard.
|