India’s trade deficit decreased to $21.94 billion in December, driven by an increase in exports and a decline in imports on a sequential basis. In November, the trade deficit stood at $32.84 billion.

However, on a yearly basis, the trade deficit expanded from $18.76 billion in December 2023.

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Goods exports for December fell by approximately 1% year-on-year to $38.39 billion, while imports increased by 4.8%, reaching $57.15 billion.

Merchandise exports in December 2024 were USD 38.01 billion, compared to USD 38.39 billion in December 2023, while imports were USD 59.95 billion as compared to USD 57.15 billion.

Non-petroleum and non-gems & jewellery exports in December 2024 were USD 30.96 billion, compared to USD 28.60 billion in December 2023, while imports were USD 38.28 billion, up from USD 36.86 billion.

It is worth noting that earlier, the government reported that India’s trade deficit had hit a record high of $37.84 billion in December last year.

After revising gold import figures, the deficit was adjusted to $32.84 billion.

November’s trade data was updated, reflecting a significant reduction in gold import estimates.

For December, the estimated value of services exports was USD 32.66 billion, while services imports stood at USD 17.50 billion.

Experts are set to keep an eye on India’s trade deficit as US President-elect Donald Trump prepares to assume office on January 20.