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Commerce secretary Sunil Barthwal stated that despite the challenges, merchandise exports performed well in the first half of FY24 | (Photo: Shutterstock)
India’s trade deficit eased to $20.78 billion in September as merchandise imports growth slowed to 1.6 per cent, and merchandise exports grew 0.5 per cent due to muted global demand amid geopolitical challenges, according to data released by the commerce department.
The trade deficit had widened to a 10-month high of $29.7 billion in August.
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Exports stood at $34.58 billion in September, while imports were at $55.36 billion during the month.
Commerce secretary Sunil Barthwal stated that despite the challenges, merchandise exports performed well in the first half of FY24.
Last week, the World Trade Organization (WTO) revised its projection of world merchandise trade growth for 2025 downwards to 3 per cent from the earlier estimate of 3.3 per cent.
For 2024, the WTO revised its forecast for merchandise trade growth slightly upwards to 2.7 per cent, from the previous estimate of 2.6 per cent.
However, the multilateral trade body noted that risks to the forecast remain on the downside due to regional conflicts, geopolitical tensions, and policy uncertainty.
In the event of an escalation of conflict in West Asia, the effects would be felt in other regions, particularly through further disruptions to shipping and rising energy prices due to increased risk premiums.
“While the disruptive impact of the Red Sea crisis has been contained to date, other routes could be impacted in a wider conflict. There would also be a heightened risk of energy supply disruptions given the region’s significant role in petroleum production. Higher energy prices would dampen economic growth in importing economies and weigh on trade indirectly,” the WTO stated.
The first half of 2024 saw a 2.3 per cent year-on-year increase in trade. This rebound followed a slump of 1.1 per cent in 2023, driven by high inflation and rising interest rates.
First Published: Oct 16 2024 | 3:16 PM IS
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