India's trade deficit shrinks to $24.16 billion in August
India's merchandise trade deficit decreased to $24.16 billion in August this year. This is down 2.8% from the same month in 2022, according to Commerce Secretary Sunil Barthwal. The decline in the trade deficit is a positive sign for the Indian economy. However, exports fell year-on-year (YoY) from $37.02 billion last year to $34.48 billion, with low petroleum prices affecting the overall export fall.
Engineering and electronics sectors showed growth
Barthwal highlighted that the engineering goods sector grew by 7.73%, while electronic goods grew by 26.29%. Other products, including ceramic goods, drugs and pharma, and agricultural exports, are also doing well. Prices have gone down for several products, including petroleum, inorganic chemicals, marine, paint, varnish, tea, finished leather, as well as cashew. The gems and jewelry sector saw a drop of $4.4 billion YoY in August due to a slowdown in developed economies.
A detailed breakdown of the figures
In August, merchandise imports stood at $58.64 billion, compared to $52.92 billion in the previous month. Exports to the US went down from $35.15 billion to $31.55 billion YoY in August. Last month, the services exports were valued at $26.39 billion, while imports stood at $13.86 billion. In July, services exports and imports were $27.17 billion and $14.85 billion, respectively.
