Mixed Trends in India's Export and Import Data for March 2023

In March, India experienced fluctuations in its export and import data. Services exports dropped from $32.35 billion in February to $28.54 billion in March, while merchandise exports slightly decreased to $41.68 billion during the same month. The trade deficit for March reached $15.6 billion as imports also declined by 5.98 per cent to $57.28 billion.

Despite these fluctuations, India's overall exports (merchandise + services) are anticipated to exceed the previous year's record, with a projected increase to $776.68 billion in 2023-24 compared to $776.40 billion in the previous fiscal year. The highest monthly merchandise exports in 2023-24 were recorded in March at $41.68 billion, driven by key sectors such as electronic goods, drugs and pharmaceuticals, engineering goods, iron ore, cotton yarn/fabs/made-ups, handloom products, ceramic products, and glassware.

The growth in specific export sectors is notable, with electronic goods exports increasing by 23.64 per cent from $23.55 billion in 2022-23 to $29.12 billion in 2023-24. Similarly, drugs and pharmaceuticals exports rose by 9.67 per cent from $25.39 billion to $27.85 billion during the fiscal year. Engineering goods exports also showed a 2.13 per cent increase to $109.32 billion in 2023-24. Overall, the commerce ministry indicated that the trade deficit is expected to improve significantly by 35.77 per cent from $121.62 billion in 2022-23 to $78.12 billion in 2023-24.