Goods trade deficit narrows in Dec due to higher exports

India saw a rise in exports of electronic goods, drugs and pharma, and iron-ore in Apr-Dec

- Rhik Kundu & Dhirendra Kumar

India's goods trade deficit narrowed by about 4% in December, compared with November, due to a rise in exports, the commerce ministry on Monday said.

Services exports fell marginally to $27.88 billion in December, compared to $28.69 billion in November, but remained higher than imports which fell to $13.25 billion from $13.40 billion in the previous month.

The merchandise trade deficit fell to $19.80 billion in December, from $20.58 million in November, amid a surge in electronic goods, drugs and pharmaceuticals, and iron-ore exports.

Merchandise exports totalled $38.45 billion, while imports stood at $58.25 billion, compared with November when merchandise exports totalled $33.90 billion, and imports stood at $54.48 billion.

On an annual basis, merchandise exports rose by 1% while imports fell by 4.85% during December 2023.

"Despite a global slowdown, we are in a positive zone," commerce secretary Sunil Barthwal said at a press briefing after the release of the trade data.

"I am happy that the last quarter of FY24 is expected to be better than the previous three quarters (in terms of trade)," he added.