India’s Nov merchandise trade deficit narrows sharply on subdued imports

INDIA’S merchandise trade deficit narrowed sharply to US$20.58 billion in November from the previous month’s record levels as imports of gold, petroleum and electronic goods moderated, government data showed on Friday (Dec 15).

The trade deficit in November was lower than the US$23.60 billion expectation of economists polled by Reuters.

India’s merchandise exports in November stood at US$33.9 billion, while imports were US$54.48 billion, government data showed.

In the previous month, merchandise exports were US$33.57 billion, while imports stood at US$65.03 billion.

Gold imports nearly halved on month to US$3.45 billion in November, an analysis of government data by Reuters showed. Gold imports for October were at US$7.2 billion.

Imports of petroleum products were 22 per cent lower in November than the previous month at nearly US$13.71 billion. Electronic goods imports registered a near 17 per cent decline in the latest print at US$6.49 billion, analysis showed.

Services exports in November were US$28.68 billion, while imports were US$13.4 billion. In October, services exports were US$28.70 billion and imports were US$14.32 billion.

The sharp widening in India’s merchandise trade deficit in October to a record level, fuelled by a broad-based rise in imports due to festive demand, was expected to be an outlier.

India’s months-long festival demand peaks during Diwali, the festival of lights, which was celebrated on Nov12.

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Merchandise exports for the period April-November totalled US$278.80 billion, while imports for the same period reached US$445.15 billion, the data showed. REUTERS