New Delhi, 3 August 2022 (TDI): Despite constraints, India’s imports soared in July, pushing its trade imbalance to a record $31.02 billion, while shipments of products shrank exotically in 20 months.
Due to rising stock prices and a weakened rupee, July’s trade balance decreased by 0.76 percent from a year before to $37.24 billion, whilst revenue expanded by 44 percent to $66.26 billion.
These trends were revealed in statistics issued by the ministry of commerce and industry on Tuesday. As a consequence, from the $10.63 billion recorded in July of the previous year, the trade deficit amid the trade balance—tripled.
Statistical Figures
According to provisional stats issued by the commerce ministry, India’s imports of goods in July 2022 were $66.26 billion, up 43.59% from $46.15 billion in the corresponding month a year earlier.
But from April to July 2022–23, exports were $156.41 billion, up 19.35% from $131.06 billion over the same time in the preceding fiscal year.
India imported $256.43 billion worth of goods between April and July 2022–23, an increase of 48.12% over the previous year.
In July of FY22, imports of crude products were $21.13 billion, an increase of 70.4% from $12.4 billion in July of the previous year.
Vegetable oil imports increased by 47.18%, whereas imports of coal, coke, and briquettes increased by 164.43 percent.
Furthermore, exports of gold into the state fell by 43.6% to $2.37 billion from 4.2 Bn in July 2021.
In contrast, exports of engineering items abroad showed a solid yearly rise. While technical items, oilfield products, gems and jewellery, medications, and pharmaceuticals decreased RevPAR.
The trade imbalance increased to $31.02 billion due to more imports than exports. It has practically quadrupled from $10.63 billion during the same period of FY21.
Between April and July 2022–2023, the deficit rose to $100.01 billion.
India ought to be “worried,” apropos to Commerce Secretary B V R Subhramanyam, since recession worries are lurking in several of India’s biggest trade clients, the US and Europe. As he noted,
“We will be able to compensate for the hit from these two regions. The recently signed trade deals with the United Arab Emirates and Australia (and the upcoming deal with the UK) will boost exports. There can be $15-16 billion exports to these two nations.”
He added that the exports in July 2022 are almost static compared to last year. According to sales statistics for Quarter-1 of FY22 trade deficit that ended in July, Subhramanyam denoted, “we will be comfortably above $500 billion (merchandise exports overall in FY23).”
