“Services exports and remittances are, however, expected to provide cushion to the current account deficit. We, therefore, expect CAD to remain eminently manageable during the current financial year also,” he said. “Merchandise exports and non-oil, non gold imports contracted further in June and the growth in services exports decelerated amid slowing external demand.”
India’s merchandise trade deficit narrowed to $20.13 billion in June, compared with $22.1 billion in May. The trade deficit contracted slightly as the decline in imports was more than the fall in exports.
Merchandise exports stood at $32.97 billion, while imports were $53.10 billion in June. Merchandise exports were $42.28 billion in June 2022. In the previous month, merchandise exports were $34.98 billion, while imports stood at $57.10 billion.
On the other hand, the estimated value of services export for June 2023 was $27.12 billion, as compared to $26.92 billion in June 2022.India’s overall exports (merchandise and services combined) in June 2023 is estimated to be $60.09 billion, which is -13.16% over June 2022, according to PIB release in July. Overall imports in June 2023 is estimated to be $68.98 billion, which is -13.91 % over June 2022. India’s overall exports (merchandise and services combined) in April-June 2023 is estimated to fall 7.29 per cent over April-June 2022. Overall imports in April-June 2023 is estimated to decline 10.18 per cent over April-June 2022, according to the report.Meanwhile, the RBI in its monetary policy committee meeting unanimously decided to keep the repo rate unchanged at 6.5%. RBI generally conducts six bi-monthly meetings in a financial year, where it decides interest rates, money supply, inflation outlook, and various macroeconomic indicators.