India’s goods trade deficit hits a 10-month high

Source: The post is based on the article “India’s goods trade deficit hits a 10-month high”  published in The Hindu on 16th September 2023

What is the News?

India’s foreign trade has hit a fresh trough in August with the goods trade deficit hitting a 10-month high.

India’s Foreign Trade Challenges in August,2023: Goods exports have been declining for seven consecutive months.The goods trade deficit has reached a 10-month high.

– Services exports, which had been growing, decreased for the first time in over a year.

Impact of Oil Prices on Exports: Nearly half of the decline in exports this year has been due to falling petroleum prices.

– Export volumes of petroleum products increased by 6% from April to July, but prices were 27% lower than a year ago.

Challenges and recommendations: The Federation of Indian Exporters’ Organisations (FIEO) noted subdued demand in major economies like the EU, U.S., China, Australia, and Asia.

– FIEO expects improvements in the coming months, especially with fresh orders expected for the Christmas and New Year season.

– FIEO emphasizes the need for easy and cheaper credit for small enterprises, marketing support, exemption of GST levies on export freight, interest equalization support and an extension of the emergency credit line guarantee scheme to help exporters during challenging times.