Exports for the month of November rose marginally to $31.99 billion from $31.80 billion in November 2021, registering y-o-y growth of 0.6%. On the other hand, imports rose 5.4% to $55.9 billion from $53.03 billion, resulting to a seven-month low trade deficit of $23.9 billion in November. Overall exports, including both merchandise and services, stood at $58.22 billion in November, showing a 10% y-o-y growth.

Experts point out that lower oil imports bill played a key role in bringing down trade deficit in November as compared to October, with official figures showing that oil imports came down to $15.7 billion in November from $18.2 billion in the previous month. This development is notable, particularly in the background of the country’s crude oil bill surging 76% to $90.3 billion - 15 percent quantity wise - in the first half of 2022-23.

An important trend visible in recent months is increase in oil product exports from the country. According to a media report, India’s oil product exports during the April-October period jumped 70 percent against 12.5 percent increase in total exports as several countries have reduced their dependence on Russia-refined oil products. India, in contrast, has been buying Russian crude oil and exporting finished products at higher margins to several countries.

Meanwhile, the moderate growth in November exports again signals to the toughening global trade conditions, in the background of which exporters have raised several demands, including introduction of export credit refinance facility to banks by the RBI to ensure credit at competitive price, restoration of the interest equalization support, continuation of IGST exemption on freight on exports, etc. The government should pay heed to these demands.

I invite your opinions.