India's Trade Resilience Amid Global Challenges

India's exports contracted for the second consecutive month in December 2024 due to global uncertainties, but showed resilience compared to other countries. Despite a widened trade deficit, there's growth in non-petroleum exports. The government revised gold import data for November, aiming for better data consistency.

India's export sector faced a contraction for the second consecutive month in December 2024, dipping approximately one percent year-on-year to USD 38.01 billion, amid persistent global uncertainties. However, the trade deficit showed signs of narrowing, closing at USD 21.94 billion.

The Commerce Ministry reported a year-on-year increase in imports by about five percent, reaching USD 59.95 billion in December. Over the cumulative period of April to December, exports saw a slight growth of 1.6 percent to USD 321.71 billion, while imports rose by 5.15 percent to USD 532.48 billion, leading to a widened trade deficit of USD 210.77 billion from USD 189.74 billion the previous fiscal year.

Commerce Secretary Sunil Barthwal highlighted India's export resiliency, stating that the country is outperforming others in both goods and services. The government is focused on resolving export issues, particularly in electronics, engineering, and pharmaceuticals. Additionally, efforts are being made to enhance data accuracy with a revised gold import data report for November.

(With inputs from agencies.)