India’s April Trade Performance: Exports Inch Up, Trade Deficit Widens

In April, India’s merchandise exports saw a modest 1% increase, reaching $34.99 billion, driven by robust growth in sectors like electronics, chemicals, petroleum products, and pharmaceuticals, despite global economic uncertainties. However, the trade deficit widened to a five-month high of $19.1 billion, with imports rising by 10.25% to $54.09 billion. Notably, imports of gold and crude oil surged, contributing to the deficit.

Key Highlights

Exports and Imports

• Exports up by 1% to $34.99 billion.
• Imports surged by 10.25% to $54.09 billion, driven by significant increases in gold and crude oil imports.

Sectoral Performance

• Healthy growth observed in sectors like electronics, chemicals, petroleum products, and pharmaceuticals.
• Merchandise exports in 13 out of 30 key sectors showed positive growth, including coffee, tobacco, spices, plastic, and handicrafts.

Trade Deficit

• Trade deficit widened to a five-month high of $19.1 billion, attributed to the significant increase in imports, particularly gold and crude oil.

Services Trade

• Services exports estimated at $29.57 billion, compared to $25.78 billion in April 2023.
• Imports of services increased to $16.97 billion, up from $13.96 billion in April 2023.

Commerce Ministry’s Outlook

Commerce Secretary Sunil Barthwal highlighted that despite the widening trade deficit, the fiscal year started on a positive note, with hopes for continued growth. He also noted that the total exports in goods and services for 2023-24 have been revised to $778.21 billion, the highest recorded so far, with merchandise exports at $437.1 billion and services exports at $341.1 billion.