India's trade deficit shrinks to $20.58 billion in November

by Psu Connect
Date: 15-12-23

India's trade deficit narrowed to $20.58 billion in November from $31.46 billion in October. The exports are also decreased by 2.8 percent to $33.90 billion , while imports reduced to $54.48 billion compared to $55.8 billion in November 2022.

India's trade deficit plunged to $20.58 billion in November while Indian exports experienced a milder contraction of 2.8 percent , amounting to $34.89 billion in the corresponding period last year. As per government data, the decline was chiefly propelled by a 4.3 percent decrease in imports , totaling $54.48 billion compared to the previous year's $56.95 billion for the same month.

On the other hand, exports experienced a milder contraction of 2.8 percent , amounting to $33.90 billion , down from $34.89 billion in the corresponding last year. The trade deficit represents the varience between a country's imports and exports over a specified time frame.From April to November in the current fiscal year, exports experienced a decline of 6.51 percent , totaling $278.8 billion . Simultaneously, imports witnessed a downturn of 8.67 percent, reaching $445.15 billion over the eight-month span.

The export growth is highly commendable for its resilience amid the global economic slowdown due to geopolitical tensions and pandemic era. In October, merchandise exports experienced a notable increase of 6.21 percent reaching $33.57 billion. It is worth noting that despite this positive trend, the trade deficit expanded to a record high of $31.46 billion for the same period.

From February to july , the nation's exports experienced a downturn. Following a reevaluation of figures by the commerce ministry, there was a 3.88 percent positive growth in shipments in August. However , in September, there was a contraction of 2.6 percent. The World Trade Organization predicts a modest 0.8 percent growth in global trade for the year 2023.

The export sector is facing challenges arising from the geopolitical landscape and other factors such as elevated inflation, economic deceleration in advanced economies, the Russia - Ukraine conflict , tensions between China and Taiwan, China-US relations , and the ongoing Israel- Palestine conflict. Unexpectedly, the World Trade Organization forecasts global trade to grow only by 0.8 percent in 2023, which is surely indicating a matter of concern.