India's Trade Deficit Narrows Despite Export Dip, Services Sector Expected to Rebound

December figures show decline in overall exports, but a decrease in imports helps shrink trade gap

Jan 16, 2024 - 11:44
India's Trade Deficit Narrows Despite Export Dip, Services Sector Expected to Rebound

The government provided figures in December showing a 1% rise in exports to $38.45 billion. A 4.85% decrease in imports to $58.25 billion was seen.

According to the commerce ministry, the merchandise trade deficit shrank to $19.8 billion from $23.14 billion in the same month in 2022, driven mostly by an increase in exports of electronics, gems and jewelry, and technical items.

From April to December of this fiscal year, exports decreased by 5.7% to $317.12 billion. The amount of imports decreased to $505.15 billion, or 7.93%.

The predicted merchandise trade deficit for April–December 2023 was $188.02 billion, compared to $212.34 billion in the same period in 2022.

Indian commerce is growing despite a worldwide slump, according to Commerce Secretary Sunil Barthwal. India is expected to export $66.33 billion in total (goods and services combined) in December 2023, a 4.25 percent decrease from December 2022.

The predicted total value of imports in December 2023 is $71.50 billion, with a negative annual growth rate of 7.18%.

According to Barthwal, total exports in FY24 should undoubtedly surpass the amount from the previous year, including both products and services. Nonetheless, after an outstanding run so far, it is predicted that India's services exports would decline by 10.61 percent in December 2023 compared to the same month in 2022. However, it is expected to rise favorably at a rate of 3.52% annually from April to December.

Rajesh Mondal I am founder of Press Time Pvt Ltd, a News company. I am also a video editor, content Creator and Full Stack Web Developer.