Despite a downturn in global demand, India’s total exports and imports of commodities and services surpassed the USD 800 billion barrier during the first half of 2023 thanks to a solid rise in its services sectors. When compared to January through June of the previous year, exports of goods and services increased by 1.5% to USD 385.4 billion, up from USD 379.5 billion.
India’s exports and imports of goods and services totaled USD 800.9 billion during January to June 2023, a 2.5% decrease over the same period in the previous year (January to June 2022).
Data imply a little reduction as an outcome of poor global demand and a loss of competitiveness in labor-intensive sectors. Despite the INR’s (Indian Rupee) appreciation, exports of goods decreased. From 76.16 in April 2022 to 82.18 in April 2023, the INR/USD exchange rate increased. Since every major nation is moving inward, India should continue to concentrate on improving product quality and supply chain competitiveness. In particular, India shouldn’t give up its policy flexibility when it comes to emerging concerns involving free trade agreements and the Indo-Pacific Economic Framework for Prosperity (IPEF).
Small businesses operating in labour-intensive industries have 10-15 cost disadvantages as a result of high capital costs, poor grid power, delays at the ports, and greater regulatory costs. PLI won’t benefit non-recipients, hence it is not a solution for product categories where thousands of companies produce the same goods. India sells more than $1 billion to 41 nations. These nations must be the focus of India’s export promotion efforts because they account for 87% of its exports. In 12 of these nations, India’s exports increased, while they decreased in 29 other nations.