India’s merchandise trade deficit soared to a record $37.84 billion in November, driven by rising imports and declining exports.
India’s merchandise trade deficit in November reached a historic high of $37.84 billion, up from $27.1 billion in October, as imports surged while exports declined. Merchandise exports in November stood at $32.11 billion, a decrease from $39.2 billion in October, while imports rose to $69.95 billion from $66.34 billion the previous month.
Gold imports hit an all-time high of $14.8 billion, further exacerbating the deficit. The decline in petroleum exports, largely due to price effects, contributed to the drop in goods exports, according to Commerce Secretary Sunil Barthwal.
Economists had expected a trade deficit of $23.9 billion for November, highlighting the severity of the imbalance. A growing trade deficit could put additional pressure on India’s currency, which weakened by 0.5 percent against the dollar last month. However, trade experts suggest that deficits can be manageable if raw materials and intermediary products are imported to boost manufacturing and exports.
India’s trade deficits have been persistent since 1980, with the largest deficits coming from countries like China and Saudi Arabia.
