India’s goods trade deficit narrows to a five-month low in September

India's goods trade deficit narrowed to a five-month low in September, driven by a modest rise in merchandise exports compared to the previous year. However, the momentum remains fragile as exports declined sequentially. Imports, in value terms, hit their lowest level since May, reflecting softer domestic demand. The trade deficit stood at US$ 20.78 billion in September, down from US$ 29.65 billion in August, offering some relief as economists had expected the deficit to be around US$ 25 billion. Export values fluctuated in recent months, with merchandise exports rising to US$ 34.58 billion in September from US$ 34.41 billion a year earlier but slightly declining from August’s US$ 34.71 billion. Meanwhile, imports showed variability, standing at US$ 55.36 billion in September, slightly above US$ 54.49 billion a year ago but down from US$ 64.36 billion in August, suggesting weakening domestic demand.

India's services sector also saw growth, with exports rising to US$ 30.61 billion in September from US$ 28.42 billion in the same period last year. Imports in the services sector also increased, reaching US$ 16.32 billion in September, up from US$ 14.58 billion a year earlier. The combined value of merchandise and services exports reached US$ 65.19 billion in September, slightly lower than August's US$ 65.40 billion but higher than July’s US$ 62.42 billion. Despite this, the overall trade deficit, including both services and merchandise, widened to US$ 6.49 billion in September, up from US$ 6.23 billion during the same period last year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.