Merchandise exports increased nearly 1 percent in December, rising from $38.45 billion compared to $38.08 billion in December 2022, according to official figures released last week. While a top government official, commenting on these figures, viewed that India is "in the positive zone" despite a global slowdown, experts point out that the sector needs urgent help, particularly in the background of recent tensions arising in West Asia.

A deeper look into the exports figures shows that engineering goods, gems & jewellery, electronic goods and drugs & pharmaceuticals are of the sectors that majorly contributed to export growth in December. Exports from the gems and jewellery sector rose 14.07 percent to $2.90 billion, engineering goods exports grew of 10.19 percent at $10.04 billion and electronic goods exports increased 14.41 percent. These figures are encouraging.

It is also good news that our agricultural exports continue to grow in December and trade deficit during the April-December period improved considerably from $108.13 billion in 2022 to $69.34 billion in 2023. However, during the period, merchandise exports fell 5.70 percent year-on-year at $317.12 billion. There is another concern that that services exports, which have for some time now had performed well, is estimated to contract by 10.61 percent in December.