Rapid Fire
Improvement in India's Trade Deficit
- 18 Dec 2023
- 1 min read
Recently, India's trade deficit showed significant improvement, with exports and imports both declining, leading to a narrower trade gap.
- Merchandise exports in November 2023 decreased by 2.8% Year over Year (YoY) to USD 33.9 billion, while imports contracted by 4.3% to USD 54.98 billion, resulting in a trade deficit of USD 20.58 billion.
- The trade deficit showed a significant decline from the high of USD 29.9 billion recorded in October 2023.
- Trade Deficit is an amount by which the cost of a country's imports exceeds its exports. It is a part of the Current Account Deficit.
- Decline in petroleum and engineering product shipments, which constitute nearly half of India's exports, contributed to the overall export contraction.
- Emerging sectors like electronics (23.56% growth) and positive contributions from gems and jewelry, iron ore, pharma, and minerals provided some support in November.
Read more: Current Account Deficit, India's Export Outlook
