Exports decline by 12.2% to $34.48 billion in December, trade deficit at $23.76 billion

This comes after a 0.6% rise in exports in November and a 12% contraction in October (Representative image: Reuters)

India's merchandise exports declined by 12.2 percent to $34.48 billion in December 2022, as against $39.27 billion recorded in the same month of the preceding year, as per the government data shared on January 16. This comes after a 0.6 percent rise in exports in November and a 12 percent contraction in October.

The country's imports in December declined to $58.24 billion as against $60.33 billion recorded in the year-ago period.

The merchandise trade deficit fell further to $23.76 billion in December, after declining to a seven-month low of $23.89 billion in November.

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During April-December this fiscal, the country's overall exports rose by 9 percent to $332.76 billion. Imports during the period increased by 24.96 percent to $551.7 billion.

Commerce Secretary Sunil Barthwal said that despite global headwinds, India's exports have held its head high.

Weakening global demand amid a synchronised rise in interest rates to ward off multi-decade high inflation has led to economists predicting a gloomy 2023 for India, with the poor external environment expected to weigh on India's growth.

In a statement issued last month, the commerce ministry said the global economy poses "tremendous challenges" as it "continues to navigate an increasingly turbulent and uncertain environment".

"However, India's trade is moving forward on the high growth wave even with the high base of last year and despite global demand slowdown, exports performance continues on the high growth run," the ministry noted.

(With PTI inputs)