India’s exports contract 9.3% in August to 34.7 billion dollar amid weak global demand | The country’s trade deficit stood at ₹ 2.48 lakh crore in August: exports fell 9.3% to ₹ 2.90 lakh crore, imports increased by 3.3%

The country’s merchandise exports fell by 9.3% to $34.7 billion or Rs 2.90 lakh crore in August. In the same month a year ago, it was $38.28 billion (Rs 3.20 lakh crore). According to government data released on Tuesday, imports in August rose by 3.3% to $64.36 billion or Rs 5.39 lakh crore, which was $62.3 billion (Rs 5.21 lakh crore) in the same month a year ago.

According to the Commerce Department, India’s exports declined in August due to a drop in global demand and geopolitical challenges. During the month of August, shipments coming into the country grew by 3.3%, which led to a trade deficit of $29.65 billion or Rs 2.48 lakh crore.

Exports grew by 5.8% year-on-year Commerce Secretary Sunil Barthwal said that the sharp slowdown in China, fall in petroleum prices, recession in Europe and challenges related to transportation and logistics have affected merchandise exports. During the first three months of the financial year (April-June), exports from India grew by 5.8% year-on-year and reached $ 109.9 billion or Rs 9.20 lakh crore.

In the month of August, the country’s trade deficit was Rs 2.48 lakh crore.

Merchandise trade will grow by 2.6% in 2024 and 3.3% in 2025 In April, the World Trade Organisation’s (WTO) Global Trade Outlook and Statistics said it expected a gradual recovery in world merchandise trade volumes in 2024 and 2025, while a decline was expected in 2023 due to the effects of higher energy prices and inflation in advanced economies, particularly Europe.

The WTO said it expects merchandise trade to grow 2.6% in 2024 and 3.3% in 2025, after a 1.2% decline in 2023. The multilateral trade body warned that regional conflicts and geopolitical tensions could limit the extent of the trade rebound by further pushing up food and energy prices.

What is trade deficit? When a country’s imports exceed its exports during a certain period, it comes under the category of trade deficit. This is also called negative balance of trade. In other words, when a country buys more than it sells, it is called a trade deficit.