New Delhi: In October 2022, the country’s total exports decreased by 16.65 percent to $ 29.78 billion as compared to the same month last year. The trade deficit also increased by 5 percent in October to reach $ 2691 million (Rs 2.18 lakh crore). The Ministry of Commerce released the data related to import-export today on 15th November. According to the data released by the Union Ministry, the total exports last month stood at $ 2978 million (Rs 2.41 lakh crore).
Imports increased to $56.69 billion in October from $53.64 billion in the same month a year ago. During the first seven months of the current financial year, i.e. April-October, 2022, there has been an increase of 12.55 percent in exports and it has increased to $ 263.35 billion. During this period, there was an increase of 33.12 percent in imports and it has been $ 436.81 billion. In September 2022, there was a trade deficit of $ 2571 million (Rs 2.08 lakh crore).
Exports decreased due to a weakness in demand
Globally rising inflation, the war between Russia and Ukraine, China-Taiwan tension, and sluggish economic growth have affected demand globally. Experts believe that the situation is expected to improve in the coming times. The trade deficit increases when imports exceed exports. This also increases the pressure on the rupee. Significantly, last month, a record weakness was seen in the rupee.
What is a trade deficit?
When a country imports more than exports, then it is called a trade deficit, that is, if that country does not produce enough goods and services to meet the needs of its customers, then it has to import from other countries. Conversely, if a country exports more than it imports, it is said to have a trade surplus.
