The main reason for the decline in exports is the steps taken by the government to limit the export of some products, these steps have been taken to control the prices by increasing the domestic supply.
Trade deficit widens in August
In the month of August, there has been pressure in the import and export figures. For the first time in 20 months, the country’s exports have decreased in the month of August, while the trade deficit has more than doubled during this period. However, the government is still fully confident about the continuation of the export boom. The government estimates that the country’s exports will cross $ 750 billion in the current financial year. According to the government, the reason for the decrease in exports in the month of August is the ban on the export of certain products from the country. In fact, the government has imposed restrictions on the export of some products to increase domestic supply.
How were the import export figures?
The country’s exports declined by 1.15 per cent to $33 billion in August. Earlier, there was an increase in exports for 20 consecutive months. The earlier decline in exports came in November 2020 when it fell by 8.74 per cent. While the trade deficit has more than doubled to $ 28.68 billion. This information was received from the preliminary trade data released by the Ministry of Commerce on Saturday. A year ago in August 2021, the country’s trade deficit was $ 11.71 billion. According to government data, the country’s imports have increased by 37 percent to $ 61.68 billion in August 2022 compared to a year ago. The country’s trade deficit widened to $125.22 billion during the same period from $53.78 billion in the same period last year. Oil imports rose 86.44 per cent to $17.6 billion in August, while gold imports fell 47.54 per cent to $3.51 billion. During April-August in the current fiscal, the country’s exports grew by 17.12 per cent to $192.59 billion, while imports grew by 45.64 per cent to $317.81 billion.
Exports will continue to grow
However, Commerce Secretary BVR Subramaniam told reporters that the country’s total exports are expected to cross $450 billion in the current financial year. In product exports, we will cross the $450 billion mark in this financial year, he said. However, my internal target is $470 billion. At the same time, service exports will reach $ 300 billion. In this way, the total exports in the current financial year will be $ 750 billion as compared to $ 676 billion in the last financial year. Subramaniam said, the reason for the flat growth in exports is the steps taken to limit the export of some products. To control inflation and ensure availability of some products, we have imposed export duty on some products along with ban on wheat, steel and iron ore pellets. Due to all this, there has been some reduction in exports in these areas.