India’s goods exports declined by 9% in August 2024, largely driven by a drop in petroleum product shipments. The slowdown in global demand and volatility in crude oil prices have significantly impacted petroleum exports, one of India’s key export segments. The overall exports fell to $33 billion in August compared to $36.3 billion during the same period last year.
Source:- news 18
The decline in exports was further exacerbated by subdued performance in other major sectors like gems and jewelry, textiles, and engineering goods, which have been affected by weakened demand in major global markets such as the United States and Europe.
Source:- bbc news
On the other hand, India’s imports also saw a marginal decline, but the fall in exports outpaced that of imports, resulting in a wider trade deficit. Imports amounted to $63 billion in August, compared to $65 billion last year. This led to a trade deficit of $30 billion, the highest in 10 months, compared to $28.7 billion in July 2024. The widening trade deficit poses a challenge to India’s current account and balance of payments.
Analysts suggest that the ongoing geopolitical tensions and a slow recovery in global demand are weighing on India’s trade outlook. The government has been focusing on diversifying exports and boosting sectors like electronics and pharmaceuticals to counterbalance the slump in traditional exports, but these efforts have yet to yield significant results.
The Reserve Bank of India (RBI) has also been closely monitoring the trade deficit’s impact on the rupee, which has been under pressure in recent weeks due to weakening trade performance and outflows from foreign investors. With the global economic recovery still fragile, India’s trade challenges are expected to persist in the near term.
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