Trade deficit narrows to 5-month low

India’s merchandise trade deficit or the gap between imports and exports eased to $20.78 billion in September. Exports stood at $34.58 billion in September, while imports were at $55.36 billion during the month, according to Ministry of Commerce and Industry date.

The trade deficit narrowed compared to August when it widened to a 10-month high at $29.7 billion. The merchandise trade deficit was $23.5 billion in July and $20.98 billion in June. The deficit was at $23.78 billion in May and $19.1 billion in April.

However, on an annual basis, trade deficit widened in September 2024 compared to September 2023. The merchandise trade deficit was $20.08 billion in the same month last year, data from the ministry showed. According to the data, imports grew 1.6 per cent from last year to $55.36 billion in September 2024, while exports rose 0.5 per cent to $34.58 billion during the month.

Compared to September, inbound shipments were $64.36 billion in August, while outbound shipments stood at $34.71 billion.

Despite global headwinds, some of the sectors have driven India’s export growth. The major drivers of merchandise exports growth in September 2024 include, engineering goods, organic and inorganic chemicals, plastic and linoleum, drugs and pharmaceuticals, and ready-made garments of all textiles.