India’s exports rose by 2.14 per cent to USD 36.27 billion in July while the trade deficit almost tripled to USD 30 billion during the month due to over 70 per cent rise in crude oil imports, according to official data released on Friday.
Imports shot up by 43.61 per cent to USD 66.27 billion in the month compared to July 2021, the data showed.
The trade deficit was USD 10.63 billion in July 2021.
Preliminary data released earlier this month had shown a 0.76 per cent contraction in exports at USD 35.24 billion for July.
However, exports during April-July 2022-23 rose by 20.13 per cent to USD 157.44 billion. Imports during the four months increased by 48.12 per cent to USD 256.43 billion.
The trade deficit stood at USD 98.99 billion as against USD 42 billion during April-July 2021-22.
Imports of crude and petroleum products during July this year were USD 21.13 billion, up 70.4 per cent compared to USD 12.4 billion in July 2021.
Imports of coal, coke and briquettes shot up more than twofold to USD 5.2 billion while that of vegetable oil rose 47.18 per cent to USD 2 billion in July this year.
Inbound shipments of gold, however, declined by 43.6 per cent to USD 2.37 billion compared to 4.2 billion in July 2021.
Exports of engineering goods; petroleum products; gems and jewellery; and drugs and pharmaceuticals, contracted in July 2022 year-on-year.
On the export front, sectors which recorded positive growth include petroleum products, leather, electronic goods, and coffee.
Engineering, gems and jewellery, plastic, cashew and carpet segments witnessed a fall.
According to the data, the estimated value of services export for July 2022 is USD 24.91 billion, exhibiting a positive growth of 28.69 per cent year-on-year. Imports are estimated at USD 15.95 billion, a growth of 40.02 per cent.
Federation of Indian Export Organisations President A Sakthivel said that signs of a likely slowdown in exports can be seen as global inventories are pretty high and the merchandise exports are facing a triple whammy.
“There is again a shift in consumption from goods to the services with opening up of economies after Covid-19 pandemic; the inflation affecting all economies reducing the purchasing power and many economies entering the recession while some advanced ones already in recession,” he said.