India’s trade deficit falls to 21-month low at $15.2 bn in April

India's trade deficit in April 2023 fell to a 21-month low, as electronic goods, rice, drugs and pharmaceuticals, oil meals, ceramic products, and glassware and spices registered a significant increase in exports in April 2023, the government data released on Monday showed.

The country's collective merchandise and services deficit fell to $1.38 billion in the said period as compared to $8.37 billion in the same period last year. The merchandise trade deficit, however, was recorded at $15.24 billion in April 2023, down from $18.36 billion in the year-ago period.

India’s overall exports (merchandise and services combined) in April 2023 were recorded at $65.02 billion, up 2% over April 2022. The overall imports in April 2023 were at $66.4 billion, exhibiting a negative growth of (-) 7.92% over April 2022, the commerce & industry ministry data shows.

The merchandise exports in April 2023 were at $34.66 billion, as compared to $39.70 billion in April 2022, while the merchandise imports were at $49.9 billion, as compared to $58.06 billion in April 2022.

Under merchandise exports, 11 of the 30 key sectors exhibited positive growth in April 2023 as compared to the year-ago period. These include oil meals (95.14%), electronic goods (26.49%), rice (24.01%), oil seeds (18.01%), ceramic products & glassware (17.21%), spices (14.44%), drugs & pharmaceuticals (10.45%), fruits & vegetables (9.96%), tobacco (6.28%), coffee (4.17%) and cereal preparations & miscellaneous processed items (2.03%).

The exports of electronic goods increased by 26.49% during April 2023 at $2.11 billion as compared to $1.67 billion in April 2022. Textiles, plastic & linoleum exports continued to decline in April 2023 because of subdued demand due to recessionary effects in major economies.

The non-petroleum and non-gems & jewellery exports in April 2023 were at $25.76 billion as compared to $28.37 billion in April 2022. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in April 2023, however, were at $31.49 billion, down from $36 billion in April 2022.

In the services sector, the estimated value of services export for April 2023 is $30.36 billion as compared to $24.05 billion in April 2022, while service imports value was recorded at $16.5 billion as compared to $14.06 billion in the year-ago period. In the services trade, the country recorded a trade surplus of $13.8 billion as compared to the trade surplus of $9.99 billion in the year-ago period.

Services exports remain robust and are projected to grow at 26.24% during April 2023 over April 2022, the ministry said.