Why in News
India’s goods exports grew only for the second time in 2023-24 in October, albeit on a low base, rising 6.2% to $33.6 billion, but imports jumped to a record high of $65.03 billion, 12.3% over last year, fueled by higher gold inflows.
Why Increasing India’s trade deficit
India’s goods exports grew only for the second time in 2023-24 in October.
its on a low base, rising 6.2% to $33.6 billion,
But imports jumped to a record high of $65.03 billion, 12.3% over last year, fuelled by higher gold inflows.
Consequently, India’s monthly goods trade deficit widened to an all-time high of $31.46 billion, eclipsing the previous record of $29.23 billion in September 2022.
October’s outbound shipments’ value was also the lowest since last November, and 2.5% below September’s.
October’s trade figures, with goods exports rising 6.2%, along with indications from the first week of November.
In 2022-23, India’s goods exports had crossed $450 billion.
Between April and October this year, merchandise exports stand at nearly $245 billion, 7% below last year’s figure in the same period .
Major Importing items
India is a major importing country, with imports accounting for a significant portion of its total trade.
In 2022, India's total merchandise imports amounted to USD 613 billion, making it the third-largest importer of goods in the world.
The major importing items in India are:
Crude petroleum: Crude petroleum is India's top import.
accounting for around 20% of total imports in 2022. Inida produces only about 15% of its oil rquirements domestically.
Gold: Gold import accounting for around 8% of total imports in 2022. driven by strong demand for jewelry and investment purposes.
Coal: Coal import accounting for around 5% of total imports in 2022. India’s domestic production, which is not sufficient to meet its growing energy needs.
Diamonds: Diamonds accounting for around 5% of total imports in 2022.
Petroleum products: Refined petroleum products accounting for around 6% of total imports in 2022
Electronics: India around 10% of total imports in 2022.
Machinery: India imports 10% of total imports in 2022. Imports of machinery are driven by the need for modern equipment to support India's manufacturing and infrastructure development.
Chemical products: India imports a wide range of chemical products, including fertilizers, pharmaceuticals, and plastics, accounting for around 6% of total imports in 2022.
Textiles: India imports a variety of textiles, including raw materials, yarns, and fabrics, accounting for around 4% of total imports in 2022.
Transportation equipment: India imports a variety of transportation equipment, including automobiles, motorcycles, and aircraft, accounting for around 3% of total imports in 2022.
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