NEW DELHI: The country’s merchandise trade deficit declined five-month low to $20.78 billion in September, attributed to a slowdown in import growth to 1.6% and a slight increase in merchandise exports by 0.5%. Goods trade deficit had reached a 10-month high of $29.7 billion in August.
Goods exports amounted to $34.58 billion, while imports reached $55.36 billion. Commerce Secretary Sunil Barthwal noted that despite various challenges, merchandise exports showed strong performance in the first half of FY24.
Sequentially, goods exports have shown a fall in recent months, recording $29.65 billion in August, $33.98 billion in July, $35.20 billion in June, and $38.13 billion in May. Briefing media, Barthwal highlighted the resilience of exports in the face of challenging conditions. He said engineering goods now represent nearly a quarter of total exports.
Growth in sectors such as organic and inorganic chemicals, plastics, pharma and ready-made garments has contributed to this performance. Barthwal said despite global challenges, these sectors have been pivotal in driving export growth, bolstering India’s position as a major player in global trade.
In September, goods imports totalled $55.36 billion, slightly higher than $54.49 billion in the same month last year but significantly lower than August’s $64.36 billion. This fall indicates a weakening domestic demand. Imports have shown fluctuations in recent months, with figures of $57.48 billion in July, $56.18 billion in June, and $61.91 billion in May. Services exports rose to $30.61 billion, up from $28.42 billion during the same period last year.