Exports rise marginally at 0.6% in November, trade deficit hits 7-month low

Despite the pace in import growth outpacing that of exports, the merchandise trade deficit fell to $23.89 billion in November - the lowest in seven months.

Exports in April-November amounted to $295.26 billion, up 11.1 percent, while imports were 29.5 percent higher at $493.61 billion.

"The global economy poses tremendous challenges in the current year as it continues to navigate an increasingly turbulent and uncertain environment," the commerce ministry said in a statement.

"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 added.

Including services, total exports in April-November were $499.67 billion, up 17.7 percent. Imports, meanwhile, rose 29.5 percent to $610.70 billion.

The ministry attributed the higher increase in imports to India's domestic demand remaining steady "amidst the global slump".

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 its statement today, the commerce ministry admitted certain sectors did face challenges from the slowing global demand more severely than others.

"The engineering and iron ore products being one example where demand slowdown from major trade partners due to decline in economic activities. Moreover, the 15 percent export duty on steel weighed on engineering exports but its removal now should improve the situation," it added.