India’s Exports Dip 1 Per Cent In December 2024 As Trade Deficit Widens To $21.94 Billion, But There's A Silver Lining

India’s trade performance in December 2024 showcased a nuanced picture, reflecting both opportunities and challenges in the global economic landscape. Merchandise exports dipped marginally by 1 per cent to $38.01 billion, compared to $38.39 billion in the same period last year, as per government data released on Wednesday (15 January).

Imports, however, rose by 4.8 per cent, reaching $59.95 billion against $57.15 billion in December 2023, widening the trade deficit to $21.94 billion—a 17 per cent year-on-year increase.

Despite the slight decline in December exports, Commerce Secretary Sunil Barthwal emphasised the resilience of India’s outbound shipments. He highlighted that export values have grown consistently across all three quarters of 2024-25, with December marking only the third time this financial year that exports exceeded $38 billion.

Cumulatively, exports during April-December 2024 grew by 1.6 per cent to $321.71 billion, while imports rose 5.15 per cent to $532.48 billion, pushing the overall trade deficit for the nine-month period to $210.8 billion—up 11.1 per cent from last year.

Over the April-December 2024 period, petroleum exports declined by 20.84 per cent to just over $49 billion, while imports surged by 6.4 per cent to $138.31 billion. This disparity, according to Barthwal, was largely due to a nearly 20 per cent drop in global petroleum prices, impacting export values.

Encouragingly, non-petroleum exports continued to perform well, rising by 5.05 per cent in December and by 7.05 per cent during April-December 2024. Sectors such as machinery, chemicals, and textiles contributed to this growth, underscoring the diversification of India’s export base.

Officials noted that this steady expansion in non-petroleum trade reflects the underlying strength and adaptability of the Indian economy amid global headwinds.

Barthwal reiterated that India’s trade policy is focused on building a resilient export ecosystem, particularly in high-growth sectors.