New Delhi’s commerce ministry reported Thursday that the country’s goods trade deficit shrank to $30.2 billion in September, a marked improvement from the $33 billion shortfall recorded the same month last year. The narrowing gap came as exports climbed 23% to $44.4 billion, while imports rose a more modest 8% to $74.6 billion. On a cumulative basis including services, the deficit improved to $13.3 billion from $14.2 billion a year ago, signaling that export growth is finally outpacing import demand.
Commerce Secretary Rajesh Agarwal pointed to a sustained upward trend, noting that September marked the second consecutive month of over 20% export growth. The engine behind this surge was electronics, which jumped 70% to $5.3 billion. Engineering goods followed, rising 21% to over $12 billion, while petroleum products saw a 32% increase to $6.2 billion. "Exports are maintaining their growth trend," Agarwal stated, highlighting the resilience of these key sectors.
On the import side, policy and global pricing shifts created a mixed bag. High duties effectively choked off gold imports, which plummeted 81% to $1.8 billion, while silver also dropped 49% to $665 million. Fertiliser imports fell 22.2% to $1.8 billion, aided by cooling global prices. However, relief was not universal; electronic imports surged 51.5% to nearly $15 billion, and crude oil shipments rose 31% to $18.3 billion due to persistent high energy prices.
Geographically, Singapore, the US, and Malaysia emerged as top destinations for Indian exports this month. The trade relationship with Beijing also intensified, with bilateral trade rising about 29% to $91.8 billion in the April-September period. This made China India’s largest trading partner in the first half of the financial year, edging out the US. Exports to China grew 36% to $11 billion, while imports from the country increased 27.8% to $80.3 billion.