India’s trade deficit narrows to $20.98 billion in June

India’s trade deficit narrowed to $20.98 billion in June 2024, against May's $23.8 billion, although it widened from $19.19 billion a year earlier, according to the latest data revealed by the Ministry of Commerce & Industry. In June, India's goods exports rose by 2.6% to $35.2 billion, while merchandise imports grew by 4.9% to $56.18 billion.

Key sectors driving export growth included engineering goods, electronics, coffee, drugs and pharmaceuticals, and organic and inorganic chemicals. Engineering goods exports rose by 10.27% to $9.39 billion in June 2024 from $8.52 billion in June 2023, electronic goods by 16.91% to $2.82 billion in June 2024 from $2.42 billion in June 2023, coffee exports increased by 70.02% to $0.20 billion in June 2024, up from $0.12 billion in June 2023, exports of drugs and pharmaceuticals surged by 9.93% to $2.47 billion in June 2024 from $2.25 billion in June 2023, and exports of organic and inorganic chemicals rose by 3.32% to $2.29 billion from $2.22 billion, comparing June 2024 to the previous year.

Together with services exports, total exports stood at $65.47 billion in June 2024, while total imports stood at $73.47 billion.

“India’s total exports during April-June 2024 is estimated at $200.33 billion registering a positive growth of 8.60%. Total imports during April-June 2024 is estimated at $222.89 billion registering a growth of 8.47%,” it states.

Commerce Minister Piyush Goyal remains optimistic, projecting that India's exports of goods and services will exceed $800 billion by the end of the fiscal year, despite global economic challenges. In FY24, overall exports saw minimal growth, reaching $776.68 billion.

Looking forward, the World Trade Organisation (WTO) has revised down its forecast for global merchandise trade volume growth to 2.6% for 2024, citing easing inflation and improving real household incomes.

In the preceding month, it was reported that India's merchandise exports grew by 9.1% to $38.13 billion in May 2024, while imports rose to $61.91 billion in the same month, up 7.7% from the previous year. Notable export growth was seen in coffee (64.23%), tobacco (58.38%), electronic goods (22.97%), and others, while imports surged for goods like pulses (181%), transport equipment (31.88%), and petroleum products (28%).

Including services exports, the Commerce ministry projects India's total exports for May 2024 at $68.29 billion, marking a 10.25% increase compared to May 2023. Imports for the same period are estimated to total $79.20 billion, reflecting a 7.95% growth from May 2023.