Trade deficit widens 14.6% in August as exports dip 2.4%
India’s overall exports — both merchandise and services — in August were USD 65.4 billion, a dip of 2.4 per cent on a yearly basis, the Commerce Ministry’s data showed on Tuesday. The overall exports stood at USD 67 billion in August 2023.
Exports of merchandise goods declined by 9.3 per cent from USD 38.28 billion to USD 34.71 billion and exports of services rose by 6.89 per cent from USD 28.71 to USD 30.69 billion during the month.
India’s overall exports in July were to the tune of USD 62.42 billion. During the first five months of FY2024-25 India’s total exports stood around USD 328.86 billion, a rise of 5.35 per cent on the year-on-year basis. The government has expressed optimism about reaching its full-year export target of USD 800 billion.
Meanwhile, the country’s imports increased year-on-year in August. The overall imports increased from USD 77.39 billion to USD 80.06 billion, registering a rise of about 3.45 per cent, in August. Thereby, the trade deficit widened by 14.66 per cent last month.
In the FY2023-24, India registered record exports at USD 778 billion. Services exports rose from USD 325.3 billion in 2022-23 to USD 341.1 billion in 2023-24. Merchandise exports though marginally declined from USD 451.1 billion to USD 437.1 billion.
Gold imports doubled to $10.06 bn
- Gold imports more than doubled in August to a record high of $10.06 billion, mainly on account of a drastic cut in customs duty and ongoing festive demand, according to the Commerce Ministry data.
- The imports stood at $4.93 billion in August 2023. Commerce Secretary Sunil Barthwal said the tariff rates on gold had been reduced drastically to curb smuggling and other illegal activities. PTI
