Merchandise trade deficit widens to $27.1 billion in October

Country’s merchandise trade deficit, the difference between exports and imports widened to $27.14 billion in October from $20.78 billion in September due to surge in imports, according to Ministry of Commerce and Industry data released on Thursday.

The trade deficit stood at $29.65 billion in August, $23.5 billion in July, $20.98 billion in June, $23.78 billion in May, and $19.1 billion in April.

The merchandise exports during October 2024 was $39.20 billion as compared to $33.43 billion during the corresponding month of the previous year, registering a growth of 17.23 per cent. Major drivers of merchandise exports growth in October include, engineering goods, electronic goods, organic and inorganic chemicals, rice and readymade garments of all textiles. The top five export destinations, exhibiting positive growth in October compared to October 2023 were Singapore (197.39 per cent), UAE (43.32 per cent), USA (11.47 per cent), UK (42.12 per cent) and Australia (60.41 per cent).

On the other hand imports increased by 3.9 per cent to reach $66.34 billion in October compared to October 2023. The surge in imports reflects India’s robust internal demand, particularly for crude oil and electronics.