India's Trade Deficit Widens To Highest In Ten Months At $29.65 Billion In August
August exports fell 9.3% year-on-year to $34.7 billion, while imports rose 3.3% to $64.4 billion.
Photo by Kurt Cotoaga on Unsplash
India's merchandise trade deficit expanded in August as the rise in imports was accompanied by a fall in exports.
In absolute terms, the trade gap widened to $29.65 billion in August, compared to $23.5 billion in July, according to a press briefing by the Ministry of Commerce and Industry on Tuesday.
August exports fell 9.3% year-on-year to $34.7 billion.
August imports rose 3.3% year-on-year to $64.4 billion.
In the current global situation, exports are a huge challenge, Commerce Secretary Sunil Barthwal said, citing concerns of a recession in the US and slower growth in China and Europe. Transportation costs due to Suez Canal diversion have also escalated, he said. However, non-gems and jewellery and non-petroleum exports are growing, providing some comfort, he added.
"Globally, among the dark clouds, India is a bright spot," Barthwal said, adding that the ministry continues to receive requests for FTAs with India.
Non-petroleum and non-gems & jewellery exports in August rose 2.4% to $26.76 billion.
Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in August 2024 rose 4.6% to $26.14 billion.
Key Export Items
Exports of engineering goods stood at $9.4 billion, 4.4% higher year on year.
Petroleum product exports were at $6 billion, 37.6% lower than a year earlier.
Gems and jewellery exports were at $2 billion, 23.1% lower on an annual basis.
Organic and inorganic chemical exports were at $2.4 billion, 8.3% higher on an annual basis.
Drugs and pharmaceutical exports were at $2.3 billion, 4.7% higher from over a year earlier.
Electronic exports were at $2.3 billion, 7.9% higher from over a year earlier.
Key Import Items
Petroleum, crude, and product imports were down 32.4% from a year ago to $11 billion.
Imports of electronic goods were at $8.9 billion, 12.8% higher over a year earlier.
Machinery, electrical and non-electrical goods were at $5 billion, up 10.2% over the previous year.
Gold imports stood at $10 billion, 103.7% higher than a year ago.
