India’s merchandise trade deficit reached a four-month high in April, primarily attributed to increased imports of gold and oil, according to official data released on Wednesday. Imports surged significantly while exports saw only marginal growth compared to the same period last year.
The trade deficit for April 2024 stood at $19.1 billion, up from $14.44 billion in April 2023, surpassing economists’ expectations of $17.23 billion. Exports for April totaled $34.99 billion, a slight increase from $34.62 billion in the previous year. Meanwhile, imports totaled $54.09 billion, up from $49.06 billion in April 2023.
Gold imports more than doubled in April, reaching $3.11 billion, while oil imports amounted to $16.46 billion. Services exports rose to $29.57 billion, and services imports increased to $16.97 billion.
Although certain sectors like electronic goods, chemicals, and pharmaceuticals saw export growth, overall export of engineering goods, gems and jewelry, and marine products declined. On the import side, petroleum products, gold, and electronic goods witnessed an increase, while imports of pearls, coal, and machinery declined.
