China’s Footprint Shrinks in India’s Import Market
In the fiscal year 2022-23, China’s share in India’s merchandise imports saw a decline, dropping from 15.43 percent to 13.79 percent. The import of electronic goods from China has also witnessed a notable decrease of around $2 billion in comparison to the same period of the previous year. Import share from China in electronic goods declined from 48.1 percent to 41.9 percent, and the share of imports of fertilizers fell significantly from 21.9 percent to 13.9 percent, which accounts for a fall of around half a billion in imports from China.
Industrial Production Indexes Show Mixed Results
The general Index of Industrial Production (IIP) for February 2023 was pegged at 138.7. The indices for Mining, Manufacturing, and Electricity sectors stood at 129.0, 136.8, and 174.0 respectively. Looking at the use-based classification, Primary goods registered an index of 139.7, Capital goods at 104.4, Intermediate goods at 143.2, and Infrastructure/Construction goods at 164.0. Consumer Durables and Non-Durables indices were recorded at 108.4 and 154.3 respectively.
Core Industries See Growth, Despite Varied Sector Performance
The combined index of the eight core industries registered a growth of 3.6 percent in March 2023, compared to the same period in the previous year. The cumulative growth rate during April-March 2022-23 was at 7.6 percent. Despite overall growth, performance varied across sectors, with coal, natural gas, petroleum refinery, fertilisers, and steel production seeing increases, while crude oil, cement, and electricity production saw a decrease.
Trade Balance Deficit Increases; Exports and Imports Witness Shift
The trade deficit for the period of April-March 2023 stood at USD 122.00 billion, compared to USD 83.53 billion during April-March 2022. The total imports for April-March 2023 stood at USD 892.18 billion, while the merchandise imports in March 2023 were valued at USD 58.11 billion. On the other hand, the overall exports in March 2023 amounted to USD 66.14 billion.
Inflation Remains Steady; WPI Indicates Decrease
The annual rate of inflation, based on the Wholesale Price Index (WPI), stood at a provisional 1.34 percent for March 2023, with the decrease in inflation attributed to the fall in prices of basic metals, food products, textiles, among others. The Consumer Price Inflation (CPI) for March 2023 stood at 5.66 percent, compared with 6.44 percent in February 2023.