India's exports decline 7% to $34.48 billion in August

India's exports declined 6.86 per cent to $34.48 billion, the seventh month in a row, in August this year due to a fall in shipments from key sectors like petroleum and gems and jewellery on subdued global demand.

However, it widened on a sequential basis, as it was $20.67 billion in July.

According to the government data released on Friday, imports also declined, ninth month in a row, by 5.23 per cent to $58.64 billion against $61.88 billion recorded in August 2022.

Cumulatively, exports during April-August this fiscal contracted by 11.9 per cent to $172.95 billion.

The trade deficit (difference between imports and exports) during the month remained almost flat at $24.16 billion.

Imports during the five-month period fell by 12 per cent to $271.83 billion.

The trade deficit narrowed to $98.88 billion against $112.85 billion during April-August 2022.

Briefing media about the data, Commerce Secretary Sunil Barthwal said that there is some improvement and it is a "good sign for us".

India's exports contracted by 15.88 per cent in July.

He added that till July, there was a pessimism, but now green shoots are visible.

"It means the global situation is improving. The trade deficit, which has always been a concern, but the figures (August) are looking good. It is a soothing factor for the economy," Barthwal told reporters.

He, however, expressed concerns over rising interest rates in Europe, which may impact their manufacturing and Indian shipments.

Exports sectors, which recorded negative growth in August, include tea, coffee, rice, spices, leather, gems and jewellery, textiles, and petroleum products.

However, 15 of the 30 key sectors exhibited positive growth in August include iron ore, electronic goods, oil seeds, cashew, carpet, engineering, pharma and marine products.

On the import front, oil shipments in August dipped by 23.76 per cent to $13.2 billion.

During April-August 2023, it declined by 23.33 per cent to $68.3 billion.

Gold imports in August rose by 38.75 per cent to $4.93 billion.

During April-August 2023, it increased by 10.48 per cent to $18.13 billion.

According to the data, exports of electronic goods rose by 26.29 per cent in August to $2.17 billion.

During the five-month period, it has increased by 35.22 per cent to $11.18 billion.

Further services exports in August are estimated at $26.39 billion compared to $26.5 billion a year ago.

Imports stood at $13.86 billion against $15.22 billion.

The estimated value of services exported in April-August 2023 was $133.38 billion compared to $126.85 billion in April-August 2022.