India's trade deficit widens to over $27 billion in October
India's merchandise trade deficit widened to $27.14 billion in October, significantly up from $20.8 billion in September due to a faster growth rate in imports, data released today shows. A merchandise trade deficit occurs when a country imports more goods than it exports. Despite the difficult global environment, Indian exporters have been able to cope and continue their work, Commerce Secretary Sunil Barthwal said.
Goods exports and imports witness significant growth
The data also emphasized that goods exports witnessed a 13.4% increase in October. But imports surpassed this growth with a nearly 20% sequential jump. Barthwal praised the resilience of Indian exporters in weathering the global volatility, saying "Despite the volatile global atmosphere, Indian exporters have been able to overcome that situation and deliver." India's goods trade gap in October narrowed by $3.29 billion compared to the same month last year.
Key drivers of merchandise export growth
In October 2024, key drivers of merchandise export growth included engineering goods (up 39.7%), electronic goods (up 45.69%), and organic and inorganic chemicals (up 27.35%). According to the commerce ministry's estimates, services exports are expected to grow by 21.3% year-on-year, while imports in this segment are projected to fall by 20.8%. As a result, India's total trade balance for October is estimated at $10.12 billion, compared to $15.85 billion in the same month last fiscal year.
