Exports drop 3.5% in September, imports slide below $60 billion for the first time in seven months

This is the first decline in exports since February 2021 and the trade deficit is almost 19% higher than a year ago

India’s goods exports dropped 3.5% in September to $32.62 billion, while imports slid below $60 billion for the first time in seven months to $59.35 billion, 5.44% higher than a year ago. The trade deficit stood at $26.73 billion for the month.

This is the first contraction in exports since February 2021 and the trade deficit is almost 19% higher than a year ago. While highlighting that the trade deficit in September was “an improvement over the trade deficit of $28.68 Billion in August 2022”, the Ministry explained that India’s “export in certain sectors has seen a decline on account of slowdown in some developed economies and a consequential slowdown in demands” while “certain measures to contain domestic inflation and domestic food security concerns have also impacted exports”.

Non-petroleum and non-gems and jewellery exports contracted 9.78% in September to $22.9 billion, from $25.38 billion a year ago, while imports of such products grew 16.78% to hit $36.5 billion from $31.26 billion a year ago.

Six of India’s top ten export products, including engineering goods, chemicals, drugs and pharmaceuticals, readymade garments, cotton yarn and handlooms, and rice, recorded a contraction this September compared to last year.

“Value of non-petroleum exports in September 2022 was 26.54 USD billion, registering a negative growth of only 7.25% over non-petroleum exports of USD 28.62 billion in September 2021,” the Ministry said.

Petroleum exports rose 17% to cross $6 billion, but imports of petroleum, crude and related products dropped 7% in September, as per early estimates released by the Commerce and Industry Ministry late Monday night.

Coal imports jumped nearly 57% from $2.18 billion a year ago to cross $3.43 billion in September, even as gold imports slid 28.5% to a little over $3.6 billion compared to $5.11 billion last September.