India's trade deficit declines in November as imports dip

NEW DELHI: India’s merchandise trade deficit declined to $20.58 billion in November, primarily driven by a fall in imports of gold and oil, according to government data released on Friday.

The exports, however, fell less sharply by 2.8 per cent to $33.90 billion from $34.89 billion a year ago.

Overall imports dipped by 4.3 per cent, to $54.48 billion as compared to $56.95 billion in the same month last year.

Gold imports nearly halved on month to $3.45 billion in November from $7.2 billion in October.

Similarly, oil imports declined 22 per cent in November compared with the previous month to $13.71 billion due to the fall in crude prices. Electronic goods imports also recorded a close to 17 per cent decline at $6.49 billion.

The figures for the April-November period of the current financial year show that exports contracted by 6.51 per cent to $ 278.8 billion. Imports during the eight-month period fell by 8.67 per cent to $445.15 billion.

Commerce Secretary Sunil Barthwal said that India's exports were doing well despite the global slowdown.

In October, merchandise exports had risen 6.21 per cent to $33.57 billion. However, the trade deficit had widened to a record high of $31.46 billion during the month. Barthwal had then said the trade numbers in October reflected "green shoots" of recovery in outbound shipments.

"I am hopeful that we will be crossing last year's figures," he added.

Exports are being adversely impacted due global economic slowdown and the uncertain geopolitical situation in the wake of the Russia-Ukraine war, and the Israel-Palestine conflict.