India's exports may see tepid growth in 2023: Govt - Exportify Pulse Edition - February 24, 2023

India's exports may see tepid growth in 2023: Govt

India's exports may see tepid growth this year as the country's major export markets are forecast to decline sharply in 2023, the government said.

Growth of global trade fell in 2022, "and is expected to be still lower in 2023 with a further decline in volume and value of trade on the back of slowing global output," India's Ministry of Finance said in monthly economic report.

High frequency indicators suggest monetary tightening has started weakening global demand, the report said.

?"This may continue in 2023 as various agencies have forecasted a decline in global growth," it added.

Besides monetary tightening, uncertainties from the lingering pandemic and ongoing conflict in Europe may further dampen global growth, said the monthly economic report released on Thursday.

While inflation risks look set to diminish in 2023/24, geopolitical tensions and consequent supply chain disruptions may not, it added.

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Rice exporters see surge in demand from global buyers

After a lull of three months since the imposition of 20% export duty on rice, India's rice exporters are witnessing a surge in demand from the global markets and international buyers are willing to pay a price of $400 per tonne, as compared to $330 per tonne before the imposition of the export duty.

The government had imposed the duty on September 9 last year to contain the domestic price rise. Area under kharif fell 5.62% to 38.39 million hectares in last year's season due to poor rains in some states including UP, Bihar, Jharkhand, West Bengal. Buyers are absorbing the export duty, despite which Indian rice is cheaper than rice from Thailand which is commanding a price of $500 per tonne in the international market.

"The upswing in global demand will help India to achieve 15.5 million tonnes of non-basmati rice exports, which are only 10% lower compared to last year even though earlier it was thought exports would come down to 12-13 mt following the imposition of export duty," said BV Krishna Rao, president, Rice Exporters Association of India.

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India needs policy push to emerge as farm machinery export hub

India needs a vision for the next 15 years to convert itself into a production and export hub of non-tractor farm machinery, a report by the National Council of Applied Economic Research (NCAER) said.

Policies should address current challenges and act as accelerators to convert India’s dual farm machinery market into an advantage by producing a range of equipment that caters to all types of farmers around the world, the premier economic policy research think tank said.

NCAER has analysed the non-tractor farm machinery industry from both demand and supply side perspectives, brings out the challenges in the sector and recommends measures and reforms by benchmarking global practices in their report titled “Making India A Global Powerhouse in the Farm Machinery Industry”.

“The Indian farm machinery sector is dominated by tractors. The non-tractors farm machinery sector is rendered uncompetitive in terms of scale, innovation and prices. There is a mismatch between what the organised farm machinery sector produces and the needs of small and marginal Indian farmers. That mismatch needs to be addressed by a range of interventions on both the demand and supply sides for the non-tractor farm machinery to grow into a global hub,” said Bornali Bhandari, Professor, NCAER and the lead co-author of the report.

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Govt to increase the share of renewable energy in ports by 60% : Sarbanada Sonowal

NEW DELHI : The Centre is aiming to increase the share of renewable energy to 60 per cent in the total power consumption of its major ports from a present share of less than 10 per cent, Union Minister Shri Sarbananda Sonowal said on Tuesday.

The ports have also aimed to reduce carbon emissions per tonne of cargo handled by 30 per cent by the year 2030.

The Maritime Vision Document-2030, released by the Prime Minister, is a 10-Year blueprint on India’s vision of a sustainable Maritime sector and vibrant blue economy,” the Ports, Shipping and Waterways Minister said.

The minister said that as envisioned in the National Hydrogen Mission, the Ministry of Ports, Shipping and Waterways has identified and nominated Paradip Port, Deendayal Port and V O Chidambaranar Port for developing them as hydrogen hubs, capable of handling, storage and generation of green hydrogen by the year 2030.

The Ministry for Ports, Shipping and Waterways has undertaken green port initiatives in the major ports so that their environmental performance can be improved.

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Editor's Note

In spite of strong global headwinds, with two months remaining in the current financial year, India’s overall exports is projected to grow at 17.33 percent during April-January 2022-23 over same period last year (April-January 2021-22)

Services exports remain strong and projected to grow at 31.86 percent during April-January 2022-23 over same period last year (April-January 2021-22)?

India’s overall exports (Merchandise and Services combined) in January 2023* are estimated to be USD 65.15 Billion, exhibiting a positive growth of 14.58 per cent over the same period last year. Overall imports in January 2023* are estimated to be USD 66.42 Billion, exhibiting a positive growth of 0.94 per cent over the same period last year.

India’s overall exports (Merchandise and Services combined) in April-January 2022-23 is estimated to exhibit a positive growth of 17.33 per cent over the same period last year (April-January 2021-22). As India’s domestic demand has remained steady amidst the global slump, overall imports in April-January 2022-23 is estimated to exhibit a growth of 22.92 per cent over the same period last year.

Merchandise exports in January 2023 were USD 32.91 Billion, as compared to USD 35.23 Billion in January 2022.

Merchandise imports in January 2023 were USD 50.66 Billion, as compared to USD 52.57 Billion in January 2022.

Merchandise exports for the period April-January 2022-23 were USD 369.25 Billion as against USD 340.28 Billion during the period April-January 2021-22.

Merchandise imports for the period April-January 2022-23 were USD 602.20 Billion as against USD 494.06 Billion during the period April-January 2021-22.

The merchandise trade deficit for April-January 2022-23 was estimated at USD 232.95 Billion as against USD 153.79 Billion in April-January 2021-22.

Non-petroleum and non-gems & jewellery exports in January 2023 were USD 25.35 Billion, compared to USD 27.41 Billion in January 2022.

Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in January 2023 were USD 33.56 Billion, compared to USD 34.90 Billion in January 2022.

Non-petroleum and non-gems & jewellery exports during April-January 2022-23 was USD 259.06 Billion, as compared to USD 257.36 Billion in April-January 2021-22.

Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were USD 364.29 Billion in April-January 2022-23 as compared to USD 301.76 Billion in April-January 2021-22.

SERVICES TRADE

The estimated value of services export for January 2023* is USD 32.24 Billion, as compared to USD 21.63 Billion in January 2022.

The estimated value of services import for January 2023* is USD 15.76 Billion as compared to USD 13.24 Billion in January 2022.

The estimated value of services export for April-January 2022-23* is USD 272.00 Billion as compared to USD 206.28 Billion in April-January 2021-22.

The estimated value of services imports for April-January 2022-23* is USD 150.99 Billion as compared to USD 118.69 Billion in April-January 2021-22.

The services trade surplus for April-January 2022-23*is estimated at USD 121.01 Billion as against USD 87.58 Billion in April-January 2021-22.

Source: pib.gov.in