Trade Deficit Narrows in December

In a surprising turn of events, December witnessed a significant reduction in the trade deficit, marking a three-month low at $22 billion. This development comes as exports saw a slight contraction by 1% to $38 billion, while imports experienced a nearly 5% increase, reaching $60 billion.

Exports and Imports: A Closer Look

The decline in goods exports was primarily attributed to the falling prices of petrol and diesel, leading to a 28% drop in oil product exports to $4.9 billion. Similarly, shipments of gems and jewellery, as well as chemicals, saw decreases of 26.5% and 2.9%, respectively. On the other hand, gold imports surged by 55% to $4.7 billion, and silver shipments skyrocketed by 3.1 times to $422 million. Notably, electronics exports jumped by 35%, achieving a two-year high of $3.6 billion, and readymade garments also experienced a 13% rise to nearly $1.5 billion.

Government's Stance and Future Plans

Commerce Secretary Sunil Barthwal highlighted the resilience of Indian exports, especially non-oil shipments, and emphasized India's position as not being a petroleum exporter. He credited government schemes and the relentless efforts of exporters for India's superior performance in a challenging global market. Barthwal also mentioned that India is on track to surpass $800 billion in goods and services exports this financial year. Furthermore, the government is strategizing to enhance exports to 20 top markets, which account for approximately 60% of India's exports, by leveraging the commercial wings of Indian missions to identify new opportunities and analyze competitors.