India’s exports increased by a percent to $38.45 billion in December 2023 while the trade deficit narrowed to a three-month low of $19.8 billion, official data released on Monday showed. Imports declined by 4.85 percent to $58.25 billion in December last year due to a dip in crude oil shipments.
Reacting to export data, Israr Ahmed, President (designate) of the Federation of Indian Export Organisations (FIEO), the apex body of the Government focussing on exports, said the marginal increase in export is due to rising geo-political uncertainties, logistics challenges, slow global economic recovery and demand.
The Federation said that recent tensions in West Asia especially the threat to consignments routing through the Red Sea have further added to the woe of the exporting community, as the freight rates have gone up unimaginably high. While goods exports showed a marginal increase during the month, services continued with their growth momentum and maintained the rising trend, helping to narrow the trade deficit.
FIEO said that the need of the hour is to provide much needed momentum to the export sector by addressing the Red Sea challenges by ensuring the availability of marine insurance and bringing down freight charges. Besides, the sector needs easy & low-cost credit, and marketing support besides conclusion of key FTAs with UK, Oman and EU.
