Improvement in India's Trade Deficit | 18 Dec 2023

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.