India’s Trade Deficit Widens to Nearly $30 Billion, Exports Dip by 9.3%

The Union ministry of commerce and industry has released a data that reveals India’s goods trade deficit has increased to a $29.65 billion in August. The data highlighted that the trade deficit stood at $29.65 billion compared to $23.5 billion in July and $20.98 billion in June. 

India's merchandise exports in August declined 9.3 per cent to $34.71 billion from $38.28 billion in the year-ago month, according to the data released on Tuesday. Imports, however, increased by 3.3 per cent to $64.36 billion in August against $62.3 billion a year ago. 

“Data shows the slowdown in China, the recessionary impact on economies like the US and the EU, and rising transport costs have been challenges to exports,” said Commerce secretary Sunil Barthwal to the press. Despite geopolitical challenges, the country’s exports are increasing, he added. 

The data highlighted that the trade deficit stood at $ 29.65 billion compared to Rs 23.5 billion in July and $20.98 billion in June. 

The trade deficit that stood at $29.65 billion is much higher than the Reuters economist poll that predicted the deficit to be somewhere around $23 billion. Additionally, in April this year, the World Trade Organisation (WTO) made a forecast that global merchandise trade would recover in 2024, in the aftermath of a downward turn in high energy prices and inflation in 2023. 

The decrease in goods exports can be attributed to the slowdown in global growth. Moreover, global businesses have severely suffered due to continuous inflation, particularly in European countries. The ongoing geopolitical tensions in Ukraine, Palestine and the Red Sea too have taken a toll on global trade. 

With Inputs from PTI.