India's Trade Deficit Narrows On Strong Export Growth

ENA Sectors 2024-01-16 13:43:34 New Delhi, Jan 16 (KNN) India's goods exports showed signs of recovery in December, marking a 1 per cent increase to USD 38.5 billion—the highest monthly figure since March. The encouraging uptick was complemented by a decrease in imports, contributing to the reduction of the trade deficit to a five-month low. According to recent data from the commerce department, goods imports experienced a notable decline of 4.7 per cent, amounting to USD 58.3 billion. Consequently, the trade deficit shrank to USD 19.8 billion, highlighting a favourable trend for the Indian economy. This positive momentum was attributed to a variety of factors, including a global economic slowdown, resulting in lower commodity prices, particularly for crude and refined products such as petrol and diesel. Additionally, higher interest rates, prompted by elevated inflation, led consumers in Western countries to curtail discretionary spending. However, the services sector showed a different picture, with services exports estimated to have declined by over 10.5 per cent to USD 27.9 billion. Imports in the services sector also saw a significant drop, falling by 16 per cent to USD 13.3 billion. As India deals with these economic changes, officials are watching carefully and staying optimistic, keeping a close eye on global developments and working to maintain and improve the current positive path. (KNN Bureau) 36294 https://knnindia.co.in/news/newsdetails/sectors/indias-trade-deficit-narrows-on-strong-export-growth 2024-01-16 13:43:34 knnindia.co.in India's Trade Deficit Narrows On Strong Export Growth