New Delhi: India’s non-oil exports registered a 9% decline in January compared to the previous month, The Indian Express reported.
This is the steepest month-on-month decline in exports in this category in nine months as outbound shipments to Europe and the US slowed further amid the global shipping lines being forced to take a longer sea route through the Cape of Good Hope as Houthi forces continued attacks along the crucial routes, as per the report.
The maximum impact was visible in India’s exports to the Netherlands which is home to Port of Rotterdam, the biggest port in Europe. While electronic goods exports to the Netherlands fell by a steep 37%, drugs and pharmaceutical exports declined by 18% and engineering goods exports also slipped 15% in January compared to December, an official data from Commerce Ministry showed.
India-US and India-UK exports
For the US, India’s total exports slipped 6.32% to $12.55 billion in January, according to the report.
A sector-wise analysis suggests that marine products exports slipped 19.87%, engineering goods exports declined 12.61%, meat, dairy and poultry products slipped 11.54% and gems and jewellery exports also fell 10.83% in January compared to December, the report added.
Also read: India Needs Stronger Exports to Hold the Line
Even exports to the UK slipped 12% in January compared to December led by a decline in electronic goods, drugs and pharma shipments, as per The Indian Express. Meanwhile, demand in the UK has also slipped due to recession in the second half of 2023.
Oil exports
The petroleum exports to Europe registered 22% decline, exports to Singapore, Australia, Indonesia, Japan, Oman, Sri Lanka, and Bangladesh, jumped, as per the report.
United Nation’s stand
Commenting on the Red Sea crisis, United Nations Conference on Trade and Development’s (UNCTAD) head of trade logistics, Jan Hoffmann said: “Developing countries are particularly vulnerable to these disruptions, and UNCTAD remains vigilant in monitoring the evolving situation.”
