At $21 billion, trade deficit narrows to 5-month low

NEW DELHI: India's trade deficit narrowed to a 5-month low of just under $21 billion in Sept as exports reversed trend, rising 0.6% to $34.6 billion, while imports increased 1.7% to $55.6 billion, according to latest official data.

The preliminary numbers released by the commerce department on Wednesday also showed that during April-Sept, China had overtaken the US as India's largest trading partner. Chinese imports into the country rose 11.5% to $56.3 billion, while exports to the neighbouring country fell 9.4% to $6.9 billion. This also meant that the trade deficit widened further to $49.4 billion, compared with $42.9 billion during April-Sept 2023.

In fact, the UK has now overtaken China as India's third largest export destination. In contrast to China, during the first half of the fiscal year, India's trade with the US was estimated at $62.7 billion. The US also remained India's top export destination with the value of shipments rising 5.6% to $40.4 billion.