Delhi, India: According to data released by the government on Thursday, India's exports increased by 0.59% in November to $31.99 billion, even as the country's trade deficit increased to $23.89 billion.
In November of last year, exports totaled $31.8 billion.
The data showed that imports increased by 5.37 percent in November to $55.88 billion, up from $53.03 billion in the same month a year earlier.
Exports increased by 11% to $295.26 billion between April and November 2022, from $265.77 billion the previous year.
However, imports increased by 29.5% to $493.61 billion over the course of this fiscal year's first eight months. It was $381.17 billion during April-November 2021, according to the information.
The merchandise trade deficit has increased to $198.35 billion for April-November 2022, up from $115.39 billion for April-November 2021.
After a gap of roughly two years, India's exports fell sharply by 16.65 percent to $29.78 billion in October, primarily due to a slowdown in global demand, even as the trade deficit grew to $26.91 billion.
Global trade growth is expected to increase by 3.5% in 2022, but only by 1% in 2023, according to the World Trade Organization (WTO).
When compared to the same time last year, the exports showed positive growth in 15 out of 30 key sectors in November.
Electronic goods increased by 54.48 percent, gems and jewelry increased by 4.61 percent, RMG of textiles increased by 11.70 percent, pharmaceuticals increased by 8.66 percent, rice increased by 19.16 percent, and leather increased by 8.68 percent.
An official statement stated that "as a thriving economy with close integration into the global value chain, certain sectors do face the challenges of the slowing global demand more severely than others."
It stated that engineering exports were negatively impacted by the 15% steel export duty, but its removal now should improve the situation.
It also stated that the slowdown in demand in traditional textile markets such as China, Turkey, and Bangladesh has resulted in a decline in exports of dyes and organic chemicals.
Material commodities fell because of worldwide interest log jam as high expansion across the created world has decreased customers' buying limit.
"The economy has continued to expand due to robust domestic demand, a reenergized investment cycle, strengthened financial system, and structural reforms.
"Imports are required for certain domestic demand supply gaps and natural requirements for a large economy like ours. For instance, India's crop is dependent on imports of fertilizers, and the geopolitical conflict has also agitated the market for essential chemicals," it stated.
In addition, the import bill for essential commodities like crude petroleum and coking coal, which must be imported, has increased due to pressure from persistently high global inflation despite accelerated monetary tightening, according to the report.
In 2021 and 2022, India's trade performed exceptionally well, achieving unprecedented exports of goods and services to an all-time high. This year, as it continues to navigate an environment that is becoming increasingly tumultuous and uncertain, the global economy faces significant obstacles.
Nonetheless, India's exchange is pushing ahead on the high development wave even with the high base of last year, and in spite of worldwide interest stoppage, trades execution forges ahead with the high development run, the business service said.
Ajay Sahai, the director general of the Federation of Indian Export Organizations (FIEO), stated that although challenges persist, exports are returning to positive territory after falling in October.
"With rising inflation affecting the purchasing power in the majority of economies, the off take has slowed down. Additionally, as interest rates have moved northward, the credit cost of building inventories has increased, resulting in the large department stores maintaining low inventories. He stated, "The Fed's next move would be very important and crucial."