India’s trade deficit has widened significantly, reaching $27.14 billion in October 2024. This increase is attributed to a substantial rise in imports, which outpaced the growth in exports during the month. The trade data, released by the Ministry of Commerce and Industry, highlights both the challenges and opportunities facing India’s economy amidst a festive season that typically boosts trade activity.
India’s total exports are expected to cross $800 billion in the fiscal year ending March 2025.
India’s trade deficit widened to $27.14 billion in October 2024, mainly due to an increase in imports despite rising exports. Exports rose 17.26 percent year-on-year to $39.2 billion during the month, while imports rose 3.88 percent to $66.34 billion, according to the latest government data.
In the previous month of September 2024, merchandise exports were $34.58 billion and imports were $55.36 billion.
India’s total exports are expected to exceed $800 billion in the fiscal year ending March 2025, Commerce Secretary Sunil Barthwal told reporters after releasing the trade figures.
He said export performance was expected to remain strong with the government’s strategy to focus on select products and markets.
India’s total exports touched $776.68 billion last fiscal, according to government estimates, almost at the same level as a year earlier.
“Engineering and electronic goods are some of the focus sectors. They are doing well,” the official said, citing the increase in exports of these items during the first seven of the fiscal year.
Engineering exports rose to $67.49 billion in April-October from $61.5 billion a year earlier, and electronics goods exports rose to $19.07 billion from $15.42 billion in the same period, the data showed.
The merchandise trade deficit widened to $164.65 billion in the April-October period, up 10% from $149.67 billion a year ago.
In October, services exports were estimated at $34.02 billion and imports at $17 billion, compared to $30.61 billion and $16.32 billion respectively in the previous month.
Gold imports rose to $7.13 billion in October from $4.39 billion in the previous month, while crude oil imports rose to $18.2 billion from $12.5 billion, the data showed.
Bullion imports rose to $10.06 billion in August, the highest since March 2021, after the government cut import tariffs on the yellow metal in July.