India's foreign trade in H1 2023 surpasses $800 billion
What's the story
India's foreign trade exceeded $800 billion during the first half of 2023, with exports of goods and services increasing by 1.5% to reach $385.4 billion. According to the Global Trade Research Initiative (GTRI), this growth can be attributed to the robust performance of India's services segments, which saw a 17.7% rise in exports, totaling $166.7 billion. However, goods exports experienced an 8.1% YoY decline, amounting to $218.7 billion, while imports contracted by 8.3% to $325.7 billion.
Details
GTRI urges enhancing competitiveness and quality
GTRI suggests that India should prioritize enhancing product quality and supply chain competitiveness, particularly within free trade agreements and the Indo-Pacific Economic Framework for Prosperity. Small firms in labor-intensive sectors currently face cost disadvantages due to high capital costs, low-quality grid power, port delays, and increased compliance costs. Implementing a scheme that offers a 2-3% incentive to every firm in these sectors could help mitigate some of these challenges.
What Next?
Focus on the top 41 export partners recommended
India's exports exceed $1 billion with 41 countries, which account for 87% of its total exports. To further boost this growth, India should focus on promoting trade with these nations. Additionally, GTRI emphasizes the importance of targeted and precise retaliation against unilateral policy decisions, such as the carbon border adjustment mechanism or the EU deforestation regulation. This will safeguard India's interests in global trade.