Goods exports rise in January despite Red Sea crisis, global recession

India’s merchandise exports grew 3% in January when compared with a year ago despite disruptions in the Red Sea, a recession in developed economies and declining commodity prices, government data showed.

Sequentially, however, goods exports declined about 4% from December.

Merchandise imports also rose by about 3% to $54.41 billion during the month, driven by a surge in the inflow of gold, electronic goods and silver, data showed.

Increasing imports stretched the trade deficit to $17.49 billion, a nine-month low, against $16.52 billion last year.

Electronics, plastics, and pharma goods drove the 3.12% increase in exports to $36.92 billion in January.

“The increase in exports despite the Red Sea crisis posing challenge on the logistics front, goes to show not only the resilience of the sector but also of the exporting community, who have continuously been braving such odds since Russia-Ukraine war,” Israr Ahmed, president (officiate) of the Federation of Indian Export Organizations (FIEO), said.

Goods exports in April-January stood at $353.92 billion, down 5% from a year ago, while imports declined by 6.7% to $561.12 billion, resulting in a trade deficit of $207.2 billion, nearly 10% lower tan the previous year.

India’s overall exports, including services, in January were at $69.72 billion, a 9.28% year-on-year growth, with imports at $70.46 billion, up 4.15% over January last year.

EFTA deal

New Delhi has turned down the European Free Trade Association’s (EFTA’s) request to include a data exclusivity provision keeping the domestic generic drugs industry’s concerns in view, the Economic Times reported, citing commerce secretary Sunil Barthwal.