Exports grew 2% in July, trade deficit at record $30 billion

India’s merchandise trade deficit moderated from an earlier estimate of $31.02 billion to $30 billion

India’s goods exports grew 2.1% in July to $36.27 billion while imports jumped 43.6% to $66.27 billion, as per quick estimates from the Commerce and Industry Ministry that raised the export figure by about a billion dollars compared to preliminary data released on August 2. 

Consequently, India’s merchandise trade deficit moderated from an earlier estimate of $31.02 billion to $30 billion, still an all-time high deficit in a month.  

The merchandise trade deficit for the first four months of 2022-23 is now estimated at $98.99 billion as against $42.07 billion in the same period last year, reflecting a 135.31% rise. July marks the third successive month where India’s goods trade deficit has breached previous records.  

The upward change in outbound shipments’ estimates, which had earlier indicated a 0.8% contraction year-on-year, seemed to stem largely from petroleum products exports that grew 9.2% to cross $6.3 billion. They were earlier reckoned to have dipped 7.07% in July.  

Sectors like handicrafts, cotton yarn and handloom products, carpets and engineering goods reported declines in exports compared to July 2021. Gold imports fell 43.6% to $2.37 billon, but coal imports soared 164.4% to $5.18 billion while petroleum imports grew 70.4% to $21.13 billion.