In the Economic Survey 2022-23, India's external sector displayed a position of strength despite global headwinds. The survey highlighted that India's exports showed resilience during FY23, backed by record levels of exports in FY22. During April-December 2022, India's overall export exhibited a positive growth of 16% in dollar terms compared to the same period last year​​. India's export outlook, however, might remain flat in the coming year if global growth does not pick up as many forecasts indicate. In such cases, diversification of the product basket and destination through Free Trade Agreements (FTAs) would be crucial to enhancing trade opportunities. The survey also mentioned that the recent softening of global crude oil prices augurs well for India's petroleum, oil, and lubricants (POL) imports​​. Furthermore, the Economic Survey discussed the Balance of Payments (BoP) pressures during the year under review. The impact of a sharp rise in oil prices was discernible in the widening of the Current Account Deficit (CAD). Despite the cushion provided by the surplus on invisibles (services, transfer, and income), policy tightening by the US Federal Reserve and the strengthening of the US dollar led to Foreign Portfolio Investment (FPI) outflows. As a result, the surplus of the capital account was lower than the CAD, leading to a depletion of forex reserves on a BoP basis​​. India's fortified shock absorbers of the external sector, such as formidable forex reserves, sustainable external debt indicators, and a market-determined exchange rate, are in place to cushion the global headwinds. Forex reserves as of the end of December 2022 stood at US$ 562.72 billion, accounting for 9.3 months of imports, and the ratio of external debt to GDP was at a comfortable level of 19.2% as of end-September 2022​​. In its outlook for the external sector, the survey states that with the expected easing of crude oil prices, the resilience of net services exports, and buoyant inward remittances, the CAD would remain within sustainable limits. India's position as the top remittance receiver in the world, with inward remittances projected at record levels during 2022, further supports this outlook. The stock of India's external debt has been prudently managed, ensuring that the overall external situation remains manageable.