India’s merchandise trade deficit in June was narrower-than-expected, on the back of lower imports even as exports slipped to a seven-month low, data released on Tuesday showed. The goods trade deficit stood at $18.78 billion in June, lower than economists’ expectations of $22.24 billion and against $21.88 billion in the previous month.
Goods exports, at $35.14 billion in June, were 9 per cent lower than the previous month’s shipments and nearly unchanged from a year earlier. The figure was the lowest since November, when exports stood at $32.11 billion, according to LSEG data.
“India’s exports in June were affected by a fall in crude oil prices,” Sunil Barthwal, trade secretary, told reporters.
Crude oil, gold imports decline sequentially in June
Imports fell to $53.92 billion from $60.61 billion in May and $56 billion in June 2024. India’s crude oil imports fell to $13.7 billion from $14.7 billion in May while gold imports declined to $1.8 billion from $2.5 billion in the previous month.
For April-June, goods exports rose to $112.17 billion from $110.06 billion a year earlier, while imports gained to $179.44 billion from $172.16 billion in the year-ago period.
Exports to US rise despite higher 10 per cent tariff
Despite the base tariff on Indian goods exported to the US rising to 10 per cent, exports continued to rise. In April-June, India’s shipments to the US rose to $25.52 billion, against $20.89 billion rupees a year ago.
Meanwhile, India’s overall trade in services showed an estimated surplus of $15.62 billion in June, with services exports at $32.84 billion and imports at $17.58 billion, data showed.