India's November goods trade gap narrows to $20.58 billion as gold imports more than halves

India released trade data for November on December 15

After rising to a record-high in October, India's merchandise trade deficit narrowed to $20.58 billion in November 2023 thanks to a sharp sequential fall in gold imports, the commerce ministry said on December 15.

Gold imports last month fell by a massive 52.1 percent compared to October 2023 thereby helping India, the largest importer of the yellow metal, to significantly narrow its trade deficit. However, for April-November, imports saw an increase of 3.5 percent on year.

According to the latest data released by the ministry, India's goods trade deficit narrowed to $20.58 billion in November compared to $22.06 billion in the same month last year. Infact sequentially, the gap shrunk by a larger $9.33 billion.

While goods exports fell 2.84 percent in November on year, imports fell by 4.35 percent during the same period on year.

Commerce Secretary Sunil Barthwal said, "the November trade data indicates there are green shoots...In the last quarter typically exports rise, so we are hoping our exports this year should be as good as last year."

For April-November, merchandise exports were down 6.5 percent year-on-year at $278.8 billion, while imports contracted by 8.67 percent to $445.15 billion during the same period .

Barthwal said that India aims to beat the pessimistic trends being seen in world trade, adding that despite global slowdown Indian exports are "holding fort."

Services exports is expected to continue its resilient run as the commerce ministry estimates it to rise 6.5 percent on year in November 2023.

The data further revealed that China continues to be the top import source nation for New Delhi, followed by Russia and United States.