India's Trade Deficit At $20.78 Billion In September, Below Estimates
With exports rising by 0.5% year-on-year, India's trade statistics indicate strong performance in sectors such as engineering goods, plastics, and pharmaceuticals.
India's trade deficit was reported at $20.780 billion in September, falling below the expected $24.637 billion, according to the Directorate General of Commercial Intelligence and Statistics. This figure, however, was in the range of estimates from 23 economists tracked by Bloomberg, which varied from a deficit of $28 billion to a surplus of $25 billion.
The merchandise exports in September were recorded at $34.58 billion, while imports reached $55.36 billion, according to the government data. The data also indicated a slight decrease in merchandise exports compared to August, when they were $34.71 billion, and imports stood at $64.36 billion. In August, the merchandise trade deficit had widened to a ten-month high of $29.65 billion, reflecting significant economic pressures.
Both merchandise and services have shown positive results for the first half of the fiscal year and September, Commerce Secretary Sunil Barthwal told reporters during a media briefing on Wednesday. Despite the pressure, Barthwal emphasising that India is performing better than the global average in both sectors.
Services exports accounted for $30.61 billion, with imports at $16.32 billion. Barthwal highlighted the resilience of Indian exporters, who have managed to maintain their performance despite international challenges.
Engineering goods have become a significant part of India's export portfolio, making up a quarter of total exports. Additionally, sectors such as plastics, aluminium, drugs, and readymade garments have demonstrated strong performance, underscoring the diverse strengths of India's export landscape.
