The Union Ministry of Commerce and Industry has released a data, according to which India’s merchandise trade deficit has increased to $ 29.65 billion in August. According to the data, the trade deficit was $ 29.65 billion, while it was $ 23.5 billion in July and $ 20.98 billion in June.
According to data released on Tuesday, India’s merchandise exports in August fell 9.3 per cent to $34.71 billion from $38.28 billion in the same month last year. However, imports rose 3.3 per cent to $64.36 billion in August from $62.3 billion in the same month last year.
Commerce Secretary Sunil Barthwal told the press, “The data shows that the slowdown in China, the impact of the recession on economies like the US and the European Union, and rising transportation costs have been challenges for exports.” He said the country’s exports are growing despite geopolitical challenges.
The data showed that the trade deficit stood at $29.65 billion, as against Rs 23.5 billion in July and $20.98 billion in June.
The trade deficit, which stood at $29.65 billion, is much higher than a Reuters economist survey, which predicted the deficit to be around $23 billion. Additionally, in April this year, the World Trade Organisation (WTO) forecast that global goods trade would recover in 2024, following high energy prices and a drop in inflation in 2023.
The reason for the decline in commodity exports can be attributed to the slowdown in global growth. In addition, global trade has been severely affected by persistent inflation, especially in European countries. The ongoing geopolitical tensions in Ukraine, Palestine and the Red Sea have also had a bad impact on global trade.