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India's Exports Plummet Amid US Tariff Hikes
22 Nov
Summary
- Merchandise exports fell 11.8% to $34.38 billion in October.
- Petroleum and gems/jewellery exports saw significant declines.
- US tariffs impact exports for second consecutive month.
India's merchandise exports saw a significant contraction of 11.8% year-on-year in October, totaling $34.38 billion. This marks the second consecutive month of decline, a trend exacerbated by the US's imposition of increased tariffs on August 27. The impact has been widespread, affecting major export categories including petroleum products and gems and jewellery.
Specifically, exports of petroleum products decreased by 10.4% in October, a notable shift from the growth seen in September. Similarly, core sector exports also experienced a downturn. Merchandise exports to the United States, while still declining, showed a slight improvement compared to the previous month. Exports to non-US markets also contracted, indicating a broader global trade challenge.
Despite the challenges in merchandise exports, India's current account deficit is anticipated to remain manageable. This stability is projected to be supported by strong performance in services trade, steady remittances, and a moderation in crude oil prices. Meanwhile, India's merchandise imports remained stable during the same period.
