India's October Trade Deficit Widens to $31.46 Billion, With 6 Per Cent Increase In Exports And 11 Per Cent Surge In Imports

The latest government data reveals a notable increase in India's merchandise trade deficit for October 2023, marking an 18 per cent year-over-year (YoY) surge at $31.46 billion, up from $26.3 billion in October 2022.

As reported by Livemint, the figures exceeds many economists' projections, as exports rose by 6 per cent YoY to $33.57 billion, and imports surged by 11 per cent YoY to $65.03 billion.

The unexpected rise in the trade deficit has sparked attention, highlighting a growing gap between imports and exports.

On a month-on-month basis, both exports and imports witnessed a decline, with exports at $34.47 billion and imports at $53.84 billion in September 2023.

Shifting focus to the services sector, October's exports and imports were valued at $28.70 billion and $14.32 billion, respectively, compared to September figures of $29.37 billion and $14.91 billion.

The unexpected trade deficit rise emphasises the need for a closer examination of the factors contributing to the growing imbalance between imports and exports in India's trade landscape.