Indian Goods Exports Are Slumping
India has been battling a large trade deficit lately. A closer look at a breakdown of the country's net exports of goods and services shows where the pain points are. Indian merchandise exports have been exceptionally weak recently, with the deficit for goods traded widening to $28.7 billion in August, before recovering slightly to $26.7 billion in September. However, merchandise export were still weaker compared to one year ago, when the September goods trade deficit stood at just $22.5 billion. This was already double the deficit from one month earlier - $11.7 billion in August 2021. Stronger services exports narrowed the overall trade deficit in August,2022, while September,2022 figures are still outstanding.
This chart shows the monthly trade deficit/surplus of merchandise and services in India (in billion U.S. dollars).
The lull in export trade can be chalked up to weakening international demand due to global crises, inflation and high inventories after back-orders delayed during the later stage of the coronavirus pandemic have been filled. Among the slowdown, releases of the foreign trade bulletin by the Ministry of Commerce have also wound down. Information is still being made available through Press Releases by the Ministry, however, as well as on the website of the Reserve Bank of India.