India's Trade Deficit Widens To $19.1 Billion In April

Exports rose 1.1% annually to $34.99 billion year-on-year.

<div class="paragraphs"><p>(Source: Freepik)</p></div>
(Source: Freepik)

India's merchandise trade deficit widened in April as a sequential decline in exports is outpacing the fall in imports. A surge in gold prices too contributed to the rise in deficit.

In absolute terms, the trade gap widened to $19.1 billion in April as compared with $15.6 billion, according to a press briefing by the Ministry of Commerce and Industry on Wednesday.

  • Exports rose 1.1% annually to $34.99 billion year-on-year.

  • Imports increased 10.3% annually to $54.1 billion year-on-year.

  • Exports fell 16.1% month-on-month from March.

  • Imports declined 5.6% month-on-month from March.

Key Export Items

  • Exports of engineering goods stood at $8.7 billion, 3.2% lower year-on-year.

  • Petroleum product exports were at $6.6 billion, 3.1% higher than a year earlier.

  • Gems and jewellery exports were at $2.3 billion, 6.9% lower on an annual basis.

  • Organic and inorganic chemical exports were at $2.5 billion, 16.8% higher on an annual basis.

  • Drugs and pharmaceutical exports were at $2.4 billion, 7.4% higher from over a year earlier.

  • Electronic exports were at $2.7 billion, 25.8% higher from over a year earlier.

Key Import Items

Gold imports saw a surge aided by the spike in prices.

  • Petroleum, crude, and product imports were down 20.2% from a year ago at $16.5 billion.

  • Organic and inorganic chemical imports were at $2.2 billion, 5.2% lower on an annual basis.

  • Imports of coal, coke, and briquettes were down 11.7% than a year ago at $3.1 billion.

  • Imports of electronic goods were at $7 billion, 10% higher over a year earlier. 

  • Machinery, electrical and non-electrical goods were at $3.8 billion, down 3.5% over the previous year.  

  • Gold imports stood at $3.1 billion, 209% higher than a year ago.

India achieved the highest ever trade figure achieved in FY24, commerce secretary Sunil Barthwal said at the press briefing. The new financial year too is of to a good start and there is hope that the good start will continue as growth rates improve in western world and inflation reduces, Barthwal also said.