Merchandise trade deficit rises 39.6% on year in FY23

Meanwhile, the country’s overall exports in fiscal year 2022-23 jumped to $770 billion, surpassing the annual target set by the government.

The FY23 exports target was $750 billion, which has been exceeded by around $20 billion, Commerce Secretary Sunil Barthwal told reporters in New Delhi. In FY22, total exports of $676 billion were ecorded.

Indian exports for services sector grew by 26.79 percent to $322.72 billion this financial year. Services imports rose 21.04 percent to $177.94 billion.

Overall imports in the full fiscal year, grew by 17.38 percent to stand at $ 892.18, as compared to imports in financial year 2021-22.

The overall trade deficit grew by 46.05 percent in FY22, rising from $ 83.53 billion in FY22 to $ 122 billion in FY23.

Export of petroleum products rises, engineering goods see a decline

Petroleum exports saw a sharp spurt of 40 percent this financial year, with exports rising from $ 67.47 billion to $ 94.52 billion. Others which topped the list in merchandise exports included electronic goods, rice, organic & inorganic chemicals and drugs & pharmaceuticals.

However, a marginal decline was registered in the exports in the categories of engineering goods, cotton/yarn/handloom products, plastic and linoleum, iron ore as well as in the gems and jewellery sector.

Gold on an import decline; petroleum, crude imports see a rise

Imports for gold saw a decline of $ 11 billion, as they fell from $ 46.17 billion in FY 2021-22 to $ 35.02 billion in FY 2022-23.

Other products that saw marginal decline in imports included medicinal & pharmaceutical products, pearls, precious & semi-precious stones as well as pulses.

On the other hand, imports of petroleum, crude products saw a steep rise, buying products worth $ 209.57 billion, up from last fiscal’s $ 161.81 billion. A jump recorded in the imports of coal, coke, briquettes and transport equipment.

Imports from Russia see a growth of 370%

Imports from Russia grew highest on-year, at a rate of 396.44 percent, owing to the surge in petroleum imports from the country.

While India only had imports worth $ 9.87 billion from Russia in FY21, the number rose to $ 46.33 billion in FY22.

It’s share in Indian imports also saw a boom, rising to 6.49 percent in FY22 from its earlier 1.61 percent in FY21.

India has been buying discounted crude oil from Russia. The Asian giant relies on imports for nearly 85 percent of its needs.