India’s trade deficit decreased to $20.8 billion in September, the lowest in five months, down from $29.7 billion in August. This was due to a slight recovery in merchandise exports, which grew for the first time in three months.
Exports were down by only 0.5% compared to the 9.4% drop in the previous month. Imports, however, increased by 1.6%, slightly less than the 2.8% growth recorded in August.
This trade data contrasts with the manufacturing PMI, which suggested that external conditions were worsening, causing manufacturing activity to drop to an eight-month low.
For the first half of the fiscal year 2024-25, exports increased by 1%, while imports rose by 6.1%.
India’s imports for September stood at $55.36 billion, lower than the previous month’s $64.36 billion.
India’s exports for September were $34.58 billion, slightly less than the $34.71 billion recorded in August.
India’s trade balance for September showed a deficit of $20.78 billion, improving from the $29.65 billion deficit in August.
India had a services trade surplus of $14.29 billion in September.
Merchandise Exports and Imports in September
In September, exports increased by 0.5% compared to last year, reaching $34.58 billion. Imports also rose by 1.6% year-on-year, totaling $55.36 billion.
Services Exports and Imports
Services exports grew by 7.7% compared to last year, reaching $30.6 billion. Meanwhile, imports surged by 11.9% year-on-year, amounting to $16.3 billion.
Gold imports into India increased in September to $4.39 billion, according to the Trade Ministry.
