India's Trade Deficit Narrows To $20.98 Billion In June
Exports rose by 2.6% year-on-year to $35.2 billion, while imports increased 5% year-on-year to $56.2 billion.
India's merchandise trade deficit eased in June amid a sequential decline in imports and exports.
In absolute terms, the trade gap eased to $20.98 billion in June, as compared to $23.8 billion in May, according to a press briefing by the Ministry of Commerce and Industry on Monday.
Exports rose by 2.6% year-on-year to $35.2 billion.
Imports increased 5% year-on-year to $56.2 billion.
Exports fell 7.7% month-on-month, as compared with May.
Imports fell 9.3% month-on-month as against May.
Commerce Secretary Sunil Barthwal said that the growth in trade is expected to sustain, given positive global growth and tapering inflation. While India is one of the drivers in global export growth, "there are lots of ifs and buts" given global geopolitical conflicts, he said.
Owing to the slightly faster growth in imports vis-à-vis exports, the merchandise trade deficit expanded to $62.3 billion in Q1 FY25 from $56.2 billion in the year-ago quarter, said Aditi Nayar, chief economist at ICRA. This is expected to push up India’s CAD to about 1.4% of GDP, from 1% in Q1 FY24 and lead to a turnaround of the transient surplus of 0.6% of GDP that was seen in Q4 FY24, she said.
Key Export Items
Exports of engineering goods stood at $9.4 billion, 10.3% lower year-on-year.
Petroleum product exports were at $5.5 billion, 18.3% lower than a year earlier.
Gems and jewellery exports were at $2.2 billion, 1.4% lower on an annual basis.
Organic and inorganic chemical exports were at $2.3 billion, 3.3% higher on an annual basis.
Drugs and pharmaceutical exports were at $2.5 billion, 9.9% higher from over a year earlier.
Electronic exports were at $2.8 billion, 16.9% higher from over a year earlier.
Key Import Items
Petroleum, crude, and product imports were up 19.6% from a year ago at $15.1 billion.
Organic and inorganic chemical imports were at $2.5 billion, 1.3% lower on an annual basis.
Imports of coal, coke, and briquettes were down 16.5% than a year ago at $2.9 billion.
Imports of electronic goods were at $7.7 billion, 15.9% higher over a year earlier.
Machinery, electrical and non-electrical goods were at $4.1 billion, down 10.6% over the previous year.
Gold imports stood at $3.1 billion, 38.7% lower than a year ago.
