Exports grow by 1% even as global turmoil casts shadow

India's merchandise trade in December grew marginally by 1% on an annualised basis to $38.45 billion amid global headwinds, including recent disruptions in the Red Sea trade route, the commerce ministry said on Monday.

- Rajeev Jayaswal

NEW DELHI:

India's trade deficit declined as imports fell 4.85% to $58.25 billion compared to $61.22 billion in December 2022, commerce secretary Sunil Barthwal said. "Global trade is facing adverse conditions," he said. "India in that sense doing well. We are beating the global trend."

Houthi rebels in Yemen have attacked ship plying on the Red Sea, disrupting trade. Some 80% of India's merchandise trade with Europe passes via the Red Sea. The major contributors to export growth in December included engineering goods, iron ore, gems and jewellery, electronic goods and pharmaceuticals, Barthwal said. The three months to March is typically stronger than the preceding three quarters in terms of trade, he added, but much would depend on developments in the Red Sea.