India’s trade deficit narrows to $15.6 billion in March; monthly exports highest in FY24 | Key things to know

India’s trade deficit in March 2024 narrowed to $15.6 billion, as compared to $18.96 billion in the same month last year, as per the data released by the Ministry of Commerce and Industry on Monday, April 15.

The trade deficit – difference between merchandise exports and imports – was also lower as compared to the preceding month of February 2024, when it stood at $18.71 billion.

The total merchandise exports during March 2024 was valued at $41.68 billion, down 0.3% year-on-year (YoY). The dip was sharper in case of imports, which declined by 5.9% YoY to $41.96 billion.

Despite the YoY fall, the value of exports in March 2024 was the highest in fiscal year 2023-24, the commerce ministry noted.

Services Exports

The value of services exports also fell during March 2024, as it came in at $28.54 billion. In March 2023, it stood at $30.44. Similarly, services imports dropped to $15.84 billion from $16.96 billion in the year-ago period.

Net trade balance for March 2024

The net trade balance – cumulative value of services and merchandise exports minus cumulative value of services and merchandise imports – stood in the negative, at -$2.91 billion in March 2024. In comparison, it stood at -$5.48 billion in the same month a year ago.

Notably, the net exports – merchandise plus services – stood at $70.21 billion in March 2024, down from $72.40 billion in the year-ago period. Net imports dropped sharper to $73.12 billion from $77.88 billion in March 2023.

FY24 trade deficit

The trade deficit for the entire year ending March 31, 2024, stood at $240.18 billion, as per the commerce ministry data. This is lower as compared to $264.9 billion in FY23.

This was a result of the difference between net merchandise exports of $437.06, and net imports of $677.24 billion in FY24.

While the trade deficit numbers have gone down, the amount of exports has also reduced as compared to the preceding fiscal. The total merchandise exports, at $437.06 billion in FY24, is lower than $451.07 billion in FY23.

On similar lines, the merchandise imports came down to $677.24 billion in FY24 from $715.97 billion in the preceding fiscal.