With global trade remaining tepid, India‘s exports growth fell 16% year-on-year in July (six months in a row), and imports dropped 17% (seven months in a row). As per UNCTAD’s nowcast, global trade volume in April-to June rose just 0.2%, led by a contraction in goods trade.
At home, the export slowdown has weighed on labour-intensive industries, whose output remains nearly 12% below pre-Covid levels.
However, defying the headline export slowdown, electronic exports have registered an annualised growth of 42% in January to July 2023 on the back of PLI incentives.