Trade deficit widens to $31.36 bn

New Delhi: India’s merchandise exports rose 6.21 per cent to $33.57 billion in October this year, even as the trade deficit touched a record high of $31.46 billion during the month, government data showed on Wednesday. Imports increased by 12.3 per cent to $65.03 billion in the month under consideration due to a jump in gold imports. Inbound shipments of gold rose by 95.5 per cent to $7.23 billion. Oil imports also rose by eight per cent to $17.66 billion during the month. The country’s trade deficit in goods in October last year stood at $26.31 billion.

“The deficit (difference between imports and exports) during October is the highest because of the largest import figures,” Additional Secretary in the Commerce Ministry L Satya Srinivas told reporters here.

Cumulatively, exports during the April-October period this fiscal contracted by seven per cent to $244.89 billion, while imports fell 8.95 per cent to $391.96 billion. The trade deficit during the seven-month period was $147.07 billion against $167.14 billion in the corresponding period last year. Gold imports during the period rose 23 per cent to $29.5 billion, while crude oil imports dipped by 18.72 per cent to about $100 billion during April-October this fiscal. Briefing reporters on the data, Commerce Secretary Sunil Barthwal said the trade numbers in October reflect ‘green shoots’ of recovery in outbound shipments.

“I am hopeful that we will be crossing the last year’s figures,” he said, adding the positive growth is there despite a fall in commodity prices, “but we are waiting and watching the global situation. Exports are impacted due to the geo-political situation and other risks like high inflation and economic slowdown in advanced economies; the Russia-Ukraine war; China-Taiwan and China–US issues; and the Israel-Palestine war.”