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Source: The post is based on the article “India’s merchandise trade crosses the $1-trillion mark in 2022” published in Business Standard on 17th January 2023.
What is the News?
India’s merchandise trade crossed the $ 1 trillion mark in the calendar year 2022 with the share of exports at $450 billion and imports at $723 billion.
About Merchandise Exports Trade in 2022
Exports witnessed robust double-digit growth in the range of 34-20% during the first six months of the year.
Thereafter, the growth started falling to single digits from July onwards, closing the year at a 12% contraction. This comes as recession fears in developed economies weighed on exports from India.
The sustained growth in exports can be attributed to the pent-up demand factor due to the opening up of most developed economies in 2021, with the easing of Covid restrictions.
Besides, India saw a significant jump in exports to developed markets such as the US, Singapore, Hong Kong and European nations such as the Netherlands, the UK, Belgium and Germany, among others.
About Merchandise Imports in 2022
Of the total merchandise imports of $723 billion in 2022, two-thirds comprised five items — 1) crude oil, 2) coal, 3) gold and diamond, 4) electronics and 5) machinery.