India’s Trade deficit shrinks to $21.94 Billion in December

NEW DELHI : India’s trade deficit dropped to $21.94 billion in December, improving from November’s $32.84 billion, driven by higher exports and lower imports.

Merchandise exports rose to $38.01 billion in December from $32.11 billion in November, while imports fell to $59.95 billion from $64.95 billion.

The trade gap widened compared to $18.76 billion in December 2023, with exports down 1% from $38.39 billion and imports up 4.8% from $57.15 billion.

November’s trade deficit was revised from $37.84 billion to $32.84 billion after reducing gold import estimates by $5 billion.

Concerns rise as the US President-elect plans new tariffs and duties, possibly targeting BRICS nations, including India.

Experts suggest trade deficits are not always negative if imports drive manufacturing and exports but caution about pressure on the rupee.

Despite potential rupee weakness, it is expected to perform better than other Asian emerging market currencies in 2025, according to Barclays Bank.