Trade Deficit Narrows In November As Imports Fall

India's trade deficit narrowed in November, as imports saw a sharp fall on a sequential basis.

The trade gap narrowed to $20.6 billion in November, as compared with $31.46 billion in October, according to data from the Ministry of Commerce and Industry.

• Exports fell 2.8% annually to $33.9 billion.

• Imports declined 4.3% annually to $54.5 billion.

• Exports rose 0.98% month-on-month in November.

• Imports fell 16.2% month-on-month.

• Exports of engineering goods stood at $10 billion, 10.2% lower year-on-year.

• Petroleum product exports were at $6.9 billion, 17.6% lower than a year earlier.

• Gems and jewellery exports were at $2.9 billion, 14.1% lower on an annual basis.

• Organic and inorganic chemical exports were at $2.6 billion, 1.04% lower on an annual basis.

• Drugs and pharmaceutical exports were at $2.5 billion, 9.3% higher from over a year earlier.

• Petroleum, crude, and product imports were down 22.8% from a year ago at $14.9 billion.

• Organic and inorganic chemical imports were at $2.2 billion, 15.6% lower on an annual basis.

• Imports of coal, coke, and briquettes were down 4.8% than a year ago at $3.5 billion.

• Imports of electronic goods were at $9.4 billion, 48.5% higher over a year earlier. 

• Machinery, electrical and non-electrical goods were at $4.2 billion, up 1.8% over the previous year.  

• Gold imports stood at $3 billion, 156.5% higher than a year ago.

The correction in the November trade deficit comes after a super high trade deficit in October, said Madhavi Arora, chief economist at Emkay Global Financial Services Ltd.

Import behaviour in October was a bit idiosyncratic and reflective of the festive and marriage season import demand for gold and consumer durable goods, which was likely to correct ahead, she explained. At the outset, it looks like the better November print is largely a reflection of that.

The sequentially flat behaviour of exports is reflective of somewhat uneven external demand, said Arora. This is contrary to the trend seen in the rest of Asia, where exports have fared relatively well in October.

However, Commerce Secretary Sunil Barthwal said that November shows the positive trend of green shoots stabilising. India is holding fort despite the global slowdown in trade, he said.

"Despite interest rates not softening, global trade slowing down and global conflict aggravating, if you look at the world and figures for India, we have done very well," Barthwal said.