India's trade deficit declines to $21.94 bn in December

The cumulative value of merchandise exports for April-December 2024 stood at $321.71 bn

- Dhirendra Kumar & Rhik Kundu

India's merchandise trade deficit fell to a three-month low of $21.94 billion in December on the back of higher exports, data released by the commerce ministry on Wednesday showed.

The merchandise trade deficit stood at $18.76 billion in the year-ago period. Economists had expected the December trade deficit to be $27.33 billion, according to a Reuters poll.

The goods trade deficit—the difference between exports and imports—had steadily widened to $37.84 billion in November, $27.4 billion in October, and $20.78 billion in September.

The deficit was $29.65 billion in August, $23.5 billion in July, $20.98 billion in June, $23.78 billion in May, and $19.1 billion in April.

To be sure, the ministry revised its import figures for April-November downward after finding a mismatch in gold shipments data.

The error was attributed to the transition of data transmission systems, which led to double counting of imports routed through special economic zones and their clearance to domestic zones.