Wed Jan 15 16:48:27 UTC 2025: **India’s Trade Deficit Narrows Despite December Export Dip**
NEW DELHI, January 15, 2025 – India’s merchandise trade deficit shrank to a three-month low of $21.9 billion in December 2024, despite a 1% year-on-year contraction in goods exports to just over $38 billion. Imports, however, grew by 4.9% to nearly $60 billion. This improvement follows a record high deficit of $31.8 billion in November.
The decline in exports was attributed to volatile commodity and metal prices, currency fluctuations, and logistical challenges impacting key markets. However, Commerce Secretary Sunil Barthwal emphasized that exports have grown every quarter this fiscal year, showcasing resilience. He also highlighted that December marked only the third time in 2024-25 that exports surpassed $38 billion.
Gold imports, initially reported as a record high, were revised downwards to $4.7 billion in December, a significant drop from November’s revised figure of $9.9 billion. Despite this, December’s gold imports were still 55.4% higher than in December 2023.
While overall goods exports for April to December 2024 increased by 1.6% to $321.7 billion, imports rose by 5.15% to $532.5 billion. The year-on-year trade deficit for December was 17% higher, and the total deficit for the period stands at $210.8 billion, an 11.1% increase.
Petroleum imports rose slightly, while petroleum product exports plummeted by 28.6%, largely attributed to a 20% decline in petroleum prices. Excluding petroleum, exports grew by 5.05% in December and 7.05% from April to December.
The Federation of Indian Exporters’ Organisation (FIEO) urged the government to implement measures in the upcoming Union Budget to support manufacturing and labor-intensive sectors, address trade finance issues, and create a focused export strategy for key markets like the U.S. in anticipation of potential opportunities arising from a possible U.S. tariff war.
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