The central government on Monday said that exports of Indian textile apparels and RMG textiles got a major hit due to recessionary trends in major economies.
In the textile sector, Cotton yarn exports declined because there was a continuous price rise of raw materials throughout 2022, as per the data released by the Ministry of Commerce and Industry.
The ministry added that the resilient growth of the Indian economy during the first half of the current financial year, the fastest among major economies, bespeaks strengthening macroeconomic stability.
However, global growth forecasts indicate a downturn in global economic activity and trade.
As per the Global Composite PMI report (January 2023), new export orders have been contracting for the tenth successive month in December.
The report also indicated that India and Ireland were the only nations to register a growth of economic activity in December 2022.
"Given the cumulative growth until December 2022 and the indicators of the slowdown in global economic activity, there is cautious optimism on international trade in the last quarter of the current financial year," the ministry said.
Vijay Kalantri, Chairman, MVIRDC World Trade Center Mumbai said, "The double-digit decline in exports during December 2022 is on expected lines because of high base effect during the same month last year. The slowdown in overseas demand is clearly visible across all sectors, except ceramics and electronics."
Kalantri said that six out of 13 agro product exports witnessed contraction in December 2022. But the good thing is that import has fallen for the first time in 24 months and this has helped in controlling trade deficit.
"The trade deficit in December 2022 is the second lowest in the current financial year 2022-23 and it is showing signs of moderation in the last two months," he said.
Meanwhile, India’s overall export declined by 5.26 per cent to USD 61.82 Billion in December 2022, as per the data released by the Ministry of Commerce and Industry on Monday.
The ministry's data showed that overall imports in December 2022 stood at USD 73.80 billion, a negative growth of 1.95 per cent over the same period last year.
Talking about merchandise exports in December 2022, it stood at USD 34.48 billion, as compared to USD 39.27 billion in December 2021.