India's trade deficit fell to $20.58 billion in Nov as imports shrank 4.3%

Trade deficit: The exports, however, fell less sharply by 2.8% in November to $33.90 billion from $34.89 billion a year ago

India's merchandise trade deficit fell to $20.58 billion in November, according to government data released on Friday. It was primarily driven by a fall in imports, by 4.3 per cent, to $54.48 billion as compared to $56.95 billion in the same month last year.

The exports, however, fell less sharply by 2.8 per cent to $33.90 billion from $34.89 billion a year ago. Trade deficit is the difference between imports and exports of a country during a time period.

During the April-November period of this financial year, exports contracted by 6.51 per cent to $ 278.8 billion. Imports during the eight-month period fell by 8.67 per cent to $445.15 billion.

Commerce Secretary Sunil Barthwal said that India's export numbers are doing good despite the global slowdown.

In October, merchandise exports had risen 6.21 per cent to $33.57 billion. However, the trade deficit had widened to a record high of $31.46 billion during the month. Barthwal had then said the trade numbers in October reflected "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.

Currently, exports are being impacted due to the geopolitical 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.

The country's exports were in a negative zone from February to July. After a revision of numbers by the commerce ministry, the shipments showed 3.88 per cent positive growth in August, but in September it contracted by 2.6 per cent.

The World Trade Organisation (WTO) forecasts global trade to grow only by 0.8 per cent in 2023.

(With agency inputs)