NEW DELHI (Economy India): India’s merchandise exports in August declined by 9.3%, dropping to $34.7 billion (₹2.90 lakh crore). This marks a decrease from $38.28 billion (₹3.20 lakh crore) recorded during the same month last year. According to government data released on Tuesday, imports for August grew by 3.3%, reaching $64.36 billion (₹5.39 lakh crore), compared to $62.3 billion (₹5.21 lakh crore) in the previous year.
The Commerce Department attributed the decline in exports to reduced global demand and ongoing geopolitical challenges. Despite these hurdles, India saw a 3.3% growth in incoming shipments, leading to a trade deficit of $29.65 billion (₹2.48 lakh crore) for the month.
Annual Export Growth of 5.8%
Commerce Secretary Sunil Barthwal highlighted factors like the significant economic slowdown in China, declining petroleum prices, Europe’s economic struggles, and transportation and logistics challenges as the primary reasons impacting merchandise exports. In the first quarter of the financial year (April-June), India’s exports showed a year-on-year growth of 5.8%, reaching $109.9 billion (₹9.20 lakh crore).
Trade Deficit Hits ₹2.48 Lakh Crore in August
India’s trade deficit for August amounted to ₹2.48 lakh crore. This marks a notable gap between exports and imports for the month.
WTO Predicts Global Merchandise Trade Growth
The World Trade Organization (WTO), in its Global Trade Outlook and Statistics report released in April, forecasted a gradual improvement in global merchandise trade volume in 2024 and 2025. This follows a downturn in 2023, primarily due to high energy prices and inflation in advanced economies, particularly in Europe.
WTO predicts a 2.6% growth in merchandise trade in 2024 and a further 3.3% increase in 2025, following a 1.2% decline in 2023. However, the organization warned that regional conflicts and geopolitical tensions could lead to further surges in food and energy prices, which may limit trade growth.
What is a Trade Deficit?
A trade deficit occurs when a country’s imports exceed its exports over a specified period. This is also known as a negative balance of trade. In simpler terms, when a country buys more than it sells, it results in a trade deficit.
(Economy India)
