India trade deficit in April falls to lowest in 21 months

NEW DELHI : India’s merchandise and services trade deficit fell to a 21 month low in April partly due to lower oil imports, a senior government official said on Monday. The merchandise and services deficit fell to $1.38 billion compared with $8.37 billion in the same period last month.

The merchandise trade deficit in April stood at $15.24 billion, according to a Reuters calculation based on export and import data released by the government on Monday.

The April trade deficit was lower than the $19.73 billion recorded in the previous month, and below the $19.50 billion forecast in a Reuters poll.

April merchandise exports were $34.66 billion, down from $38.38 billion in March, while imports fell to $49.90 billion from $58.11 billion, data showed.

April services exports was $30.36 billion, while services imports was $16.50 billion.

The rise in services exports has helped India’s current account deficit to shrink more than expected in the October-December quarter, offsetting weakness seen in goods exports.

April oil imports fell 2.46% year-on-year to $15.17 billion.

According to government data, overall exports in 2022-2023 were at $775.87 billion, up by more than 14 per cent and almost $100 billion more than the previous year. Merchandise exports in 2022-2023 had crossed $450.43 billion and services exports have gone to $325.44 billion.