Categories: Economy

Overall Trade Deficit Down at $11.11 bn in November

India’s overall trade deficit for goods and services in November this year has fallen to $11.11 billion, lower than year-ago and month-ago levels. Moreover, thanks to a recovery in exports, India’s monthly merchandise trade deficit came down to a six-month low of $23.81 billion. Trade deficit is the amount by which a country’s import costs exceed its export value in a given period.

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More About This:

November’s goods exports stood at $31.99 billion against $29.78 billion in October and $30.04 billion a year ago. The export data is still the lowest since November 2021 due to lower prices and volumes. Also, November goods imports were recorded at $55.88 billion against $56.69 billion a month ago. The number stood at $52.94 billion a year ago. November goods trade deficit has fallen to $23.81 billion against $26.9 billion in October and $22.9 billion year-on-year (YoY). The November goods deficit is the lowest since May.

About The Services:

The November trade deficit is down on marginal recovery in exports and a fall in services imports. November imports, including services, were down to $65.65 billion as against $73 billion in October and $69.33 billion a year ago. Overall November deficit saw a reduction, with the number standing at $11.11 billion against $14.63 in October. The overall deficit stood at $13.91 billion in November 2021.

What is trade deficit:

Trade deficit or negative balance of trade (BOT) is the gap between exports and imports. When money spent on imports exceeds that spent on exports in a country, trade deficit occurs. It can be calculated for different goods and services and also for international transactions. The opposite of trade deficit is trade surplus.

Is trade deficit bad for a country’s economy:

If trade deficit increases, a country’s GDP decreases. A higher trade deficit can decrease the local currency’s value. More imports than exports, according to  economists, impact the jobs market and lead to an increase in unemployment. If more mobiles are imported and less produced locally, then there will be less local jobs in that sector.

Data Regarding The Foreign Trade:

November 2022

(USD Billion)

November 2021

(USD Billion)

Merchandise Exports 31.99 31.80
Imports 55.88 53.03
Services* Exports 26.23 20.67
Imports 13.44 12.63
Overall Trade

(Merchandise+Services) *

Exports 58.22 52.46
Imports 69.33 65.65
Trade Balance -11.11 -13.19

 

Piyush Shukla

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