India's merchandise trade deficit widens to record high of USD 37.8 billion in November
Dec 16, 2024
New Delhi [India], December 16 : India's merchandise trade deficit in November came at USD 37.84 billion, attributable to burgeoning imports relative to exports. Reportedly, this is the highest monthly trade deficit by far.
India's merchandise exports in November were at USD 32.11 billion whereas the merchandise imports were to the tune of USD 69.95 billion, commerce ministry data showed Monday.
India's merchandise exports so far this year - April-November - were 2.2 per cent higher at 284.31 billion versus USD 278.26 billion a year ago period.
India's overall exports, merchandise and services combined, in November were to the tune of USD 67.79 billion, a 9.6 rise on a yearly basis, the commerce ministry data showed today. Same month last year it was USD 61.85 billion.
Exports of merchandise goods, however, declined from USD 33.75 billion to USD 32.11 billion and exports of services rose from USD 28.11 to USD 35.67 billion during the month.
So far in 2024-25, April-November, India's total exports now stood at around USD 536.25 billion, up 7.60 year-on-year versus USD 498.33 billion a year ago period. The government has expressed optimism about reaching its full-year target of USD 800 billion.
The country's imports too increased year-on-year in November, data showed today. The same was the case in September and October.
The overall imports, both merchandise and services combined, increased from USD 68.74 billion to USD 87.63 billion.
Trade deficit, meaning the difference between the exports and the imports, it widened from USD 66.91 billion to USD 82.95 billion so far in 2024-25.
In the previous financial year 2023-24, India registered record exports at USD 778 billion. In 2022-23, the country exported goods and services combined at USD 776.3 billion.
In break up, services exports rose from USD 325.3 billion to USD 341.1 billion in 2023-24. Merchandise exports though marginally declined from USD 451.1 billion to USD 437.1 billion.
Overall trade deficit significantly improved from USD 121.6 billion in 2022-23 to USD 75.6 billion in 2023-24.
Among various steps the government took was to launch a Production Linked Incentive (PLI) scheme in varied sectors, including electronic goods, to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain and reduce dependency on imports. These seemed to have reaped dividends.
