In December, imports fell by 3.5% to $58.24 billion while exports fell by 12.2% to $34.48 billion, leaving a $23.76 billion trade deficit.

 

According to government data released on January 16, India's merchandise exports decreased by 12.2 percent to $34.48 billion in December 2022 from $39.27 billion in the same month of the previous year.

This comes after exports increased by 0.6 percent in November and decreased by 12 percent in October.

The nation's Imports decreased to $58.24 billion from the $60.33 billion in the year ago.

After reaching a seven-month low of $23.89 billion in November, the merchandise trade deficit further decreased to $23.76 billion in December.

The total value of the nation's exports from April to December of this fiscal year increased by 9% to $332.76 billion. Over the time, imports rose by 24.96% to $551.7 billion.

India's exports, according to Commerce Secretary Sunil Barthwal, have maintained their strength despite global headwinds.

Economists are forecasting a bleak 2023 for India due to weakening global demand and a coordinated increase in interest rates to combat multi-decade high inflation. The unfavourable external environment is also likely to hinder India's economy in 2023.

The global economy presents "tremendous challenges," according to a statement released by the trade ministry last month, as it "continues to navigate an increasingly tumultuous and uncertain environment."

However, the ministry stated that "India's trade is continuing forward on the high growth wave even with the high base of previous year" and that "exports performance remains on the high growth run" despite a dip in global demand.