India's trade deficit widens to $17.5 billion in January
India's trade deficit has grown to $17.49 billion in January 2024, a slight increase from $17.03 billion in January 2023, as reported by Commerce Secretary Sunil Barthwal. In December 2023, the number stood at $19.8 billion. So, sequentially, the deficit has decreased in January to hit a nine-month low. A trade deficit occurs when a country imports more goods and services than it exports.
Merchandise exports and imports rise in January
Merchandise exports experienced a 3.12% annual growth in January 2024, reaching $36.92 billion, up from $35.8 billion the previous year. In contrast, December 2023's merchandise exports were $38.45 billion. Merchandise imports for January 2024 totaled $54.41 billion, a 3% year-on-year increase from $52.83 billion in January 2023. In December 2023, this figure was $58.25 billion.
Service exports show positive growth
In January 2024, services exports climbed to $32.80 billion, compared to $28 billion during the same period last year, while December 2023 saw services exports at $27.88 billion. Services imports in January 2024 were $16.05 billion, up from $14.83 billion in January 2023, and higher than the $13.25 billion recorded in December 2023. The Commerce Secretary credited the growth in merchandise exports to various sectors, including petroleum products, engineering goods, iron ore, electronic goods, drugs, and pharmaceuticals.