India’s Trade in June 2024: Exports Rise but Trade Deficit Widens

In June 2024, India’s trade deficit increased to USD 8.00 billion from USD 7.00 billion in June 2023. This USD 1 billion rise highlights a growing gap between the country’s imports and exports, raising concerns among economists and policymakers.

Exports showed a robust performance, increasing from USD 62.12 billion in June 2023 to USD 65.47 billion in June 2024. This USD 3.35 billion rise in exports can be attributed to strong demand in key sectors such as technology, pharmaceuticals, and textiles.

However, imports also surged, growing from USD 69.12 billion in June 2023 to USD 73.47 billion in June 2024, a USD 4.35 billion increase. The rise in imports suggests a growing domestic demand for foreign goods, driven by both consumer and industrial sectors.

In May 2024, India’s total exports, including both merchandise and services, reached USD 68.29 billion, marking a 10.2% increase compared to the same month last year. Merchandise exports grew by 9.1% to USD 38.13 billion, while service exports increased by 11.7% to USD 30.16 billion.

In May, exports of petroleum products, engineering goods, electronic goods, and pharmaceuticals all saw growth. However, exports of spices, other cereals, gems and jewellery, oil meals, and marine products experienced slight declines.

On the import side, there were increases in petroleum crude and products, transport equipment, electronic goods, vegetable oil, and pulses. In contrast, imports of coal coke, gold, fertilizers (both crude and manufactured), iron and steel, and chemical materials and products decreased.

The trade deficit decreased from USD 11.41 billion to USD 10.90 billion year-on-year in May 2024.