Exports fell by 16.65 percent to $29.78 billion in October compared to a year ago. This is the first contraction since February 2021 and the first time in 20 months when exports came below $30 billion. More importantly, this decline is broad-based, with exports falling in several labour intensive sectors, including engineering products, textiles and gems & jewellery. It seems the global slowdown has begun to hit our overseas shipments.

The WTO has cautioned that global trade is likely to fall further in the second half of 2022. The Geneva-based multilateral agency adds that the trend will continue in 2023 when global trade will remain subdued due to factors like geopolitical tensions, high fuel prices, high inflation and monetary tightening by major economies. In this situation, our policy makers must act decisively to avoid any potential harm.

Meanwhile, in a pre-Budget consultation with the Finance Minister, exporters demanded measures to ensure affordable credit to the sector. They also called for a host of other measures, including fiscal support to exports units which are providing additional employment, increased fiscal support for exports marketing, restoration of the interest equalisation benefit as existed prior to October 2021, etc.

Coming back to the October export figures, it is bit relief that imports fell to $56.69 billion – the lowest in eight months, and if energy prices come down further it will provide more relief to us. But what is more important at this moment is that our policy makers should come out with a concrete plan to prevent the global slowdown from weighing down India’s exports, thereby keeping the sector immune to a potential global crisis.