NEW DELHI: Amid global slowdown, India’s trade deficit expanded in July, primarily due to sluggish exports, according to government data released on Wednesday. The merchandise trade deficit for the month stood at $23.5 billion as compared to $20.98 billion in June.
In July, India’s merchandise exports reached $33.98 billion, whereas imports totaled $57.48 billion, as per the data. Meanwhile, in the month of June, merchandise exports stood at $35.20 billion, while imports were recorded at $56.18 billion.
The drop in merchandise exports was lead by a 22% drop in exports of petroleum products. “There are various factors that have contributed to the decline in petroleum exports. One factor is the fall in prices. Secondly, the demand for some of the products is low. Finally, domestic consumption of petroleum products has increased, which is playing a major role in leaving less for exportable surplus,” Barthwal told reporters in a briefing.
Barthwal also attributed the drop in petroleum exports to to higher domestic consumption. In July 2023, India exported petroleum products worth $6.7 billion, which decreased to $5.2 billion in July 2024. The import of crude petroleum rose from $11.8 billion in July 2023 to $13.8 billion in July 2024.
In view of ongoing uncertainties, India is seeking to expand into new markets like Africa and aims to diversify its export portfolio to counterbalance the challenges posed by weakened western economies, according to Commerce Secretary Sunil Barthwal who addressed media on trade data in the national capital.
In July, services exports amounted to $28.43 billion, while services imports stood at $14.55 billion. This marks a slight decrease from June, when services exports were $28.82 billion and imports were $15.02 billion.
Exports remain resilient despite global challenges, as evidenced by a major rise in exports of engineering and electronics goods, stated Barthwal. He said “monthly variations in exports are largely influenced by crude oil prices.” Meanwhile, gold imports in July totaled $3.13 billion, slightly up from $3.06 billion in June.
Govt monitoring Bangladesh crisis: Secy
New Delhi: In the light of ongoing developments in Bangladesh, the government is closely monitoring the situation to ensure restoration of trade relations at the earliest, according to Commerce Secretary Sunil Barthwal. “I can’t draw conclusions (as yet), because there has been a disruption over there. So, I think even if we give you data that is not going to say much. We are monitoring things, and we want that trade relation be restored as soon as possible. And there should be growth in the trade within the two countries.”