India’s goods exports shrank 16.65% in October to $29.78 billion, while imports grew 5.7% to to $56.7 billion, as per the data from the Commerce Ministry.
India’s trade deficit widened 50.25% to $26.91 billion in October 2022 compared to a year ago, and was 4.66% higher than September 2022 deficit.
Commerce Secretary Sunil Barthwal said the October trade data was impacted by the Diwali and Dussehra festive season as factory workers tend to go on leave. “This is a seasonal blip… We will assess whether this is a trend that will persist after looking at how November trade numbers turn out… The WTO has reduced global trade growth forecasts and the IMF has downgraded GDP growth projections. We are constantly watching the data and we will see,” he said.
This is the first contraction in goods exports during a month since February 2021.