India's goods trade deficit narrows to 3-month low of $21.94 bn in December

Commerce Ministry detailed India's trade figures for December 2024 on January 15, 2025

India's merchandise trade deficit came in at a three-month low of $21.94 billion in December 2024, data released on January 15 showed.

The last time India's merchandise trade deficit was lower than the latest figures was in September when it came in at $20.79 billion.

Even on a month-on-month basis, the trade deficit in goods was narrower in December versus the revised figure of around $32.84 billion in November.

Earlier, the commerce ministry said that the country's merchandise trade deficit had widened to a record-high of $37.84 billion in November from $27.14 billion in the previous month. However, a downward revision of $5 billion in the data for gold imports lowered the overall gap in imports and exports for that month.

In December, India imported $4.7 billion worth of gold sharply lower than the revised figure of $9.84 billion in November. Inbound shipments of petroleum and crude stood at $15.3 billion.

However, the trade deficit in goods was wider on-year for December 2024 versus $18.76 billion during the same month last fiscal.

While merchandise exports fell nearly 1 percent in December 2024 on-year, goods imports increased 4.9 percent.

India’s total exports (merchandise and services combined) for December 2024 is estimated at $70.67 Billion, rising 0.92 percent on year, while overall imports are seen at $77.44 billion, registering a growth of 6.40 percent.

The overall trade deficit last month is therefore seen at $6.77 billion.

In services alone, while imports are seen rising nearly 12 percent on year in December 2024, exports in this category are estimated to jump over 21 percent.

Services trade continues to remain in surplus for April-December 2024 estimated to be at $131.27 billion versus $120.07 billion in the same period last fiscal.

For the cumulative period between April and December 2024, merchandise exports were $321.71 billion as compared to $316.65 billion during the first nine months of FY23, while imports stood at $532.48 Billion versus $506.39 Billion in the same period.

Merchandise trade deficit during April-December 2024 was higher at $210.77 billion as compared to $189.74 billion in the same period last fiscal.

The government has formed a panel to ensure robust trade data is provided following the errors, Commerce Secretary Sunil Barthwal said, which will have implications for calculations of key macroeconomic data including current account deficit and economic output.