India's Merchandise Trade Deficit Narrows, Exports Surge

The Indian trade deficit in merchandise trade decreased to a 11-month-long low of $15.60 billion in the month of March, compared to the previous year as per the government data revealed on Monday. As per the survey of economists had come up with a deficit figure for March pegged at $18.55 billion. In the month of March, including export and import of merchandise reached $41.68 billion and $57.28 billion respectively. 

The exports of merchandise last month were $41.40 billion, but the imports were $60.11 billion in the same period. In contrast, exports of services stood at 28.54 billion USD in March, and imports were 15.84 billion USD. In February, the export value of services was $32.35 billion and the import was at $15.39 billion.

The statistics speak for themselves, as India’s exports are moving into a “positive cycle,” according to the Commerce Secretary Sunil Barthwal. The outbound shipments standing on $40 billion for the second month for a year that ended March is similar to the previous fiscal year. The export of the merchandise in FY24 displayed a dip of 3.11 per cent and amounted to $437.06 billion. FY24 imports decrease by 5.41 per cent from $677.24 billion to $648.70 billion. 

The merchandise export growth is led by electronic goods, chemicals and pharmaceuticals, engineering goods, iron ore, cotton yarn/fabs/made-ups, handlooms products and ceramic products and glassware in 2023-24.