India's trade deficit expanded to $19.1 billion in April, according to the Commerce Ministry.

Summary –

India's merchandise trade deficit surged to $19.1 billion in April from $15.6 billion in March. April exports rose marginally to $34.99 billion, while imports jumped to $54.09 billion. Gold imports doubled to $3.11 billion, but oil imports slightly declined to $16.46 billion. April's services exports were $29.57 billion, with imports at $16.97 billion, contrasting with March's $28.54 billion and $15.84 billion, respectively.

Commerce Secretary Sunil Barthwal announced on Wednesday that India's merchandise trade deficit rose to $19.1 billion in April. This marks a significant increase compared to the previous month, where the trade deficit had narrowed to $15.6 billion in March, reaching an 11-month low.

According to government data, India's exports in April 2024 increased marginally by 1.06 percent to $34.99 billion compared to $34.62 billion in the same period last year. Meanwhile, imports surged by 10 percent to $54.09 billion from $49.06 billion in April 2023. Commerce Secretary Sunil Barthwal highlighted the growth in goods exports for April, expressing optimism during a media briefing. He remarked that the figures indicated a positive start to the new financial year and expressed hope for continued growth throughout the year.

In March 2024, exports decreased to $41.68 billion from $41.96 billion the previous year. Notably, India saw a notable increase in gold imports in April, more than doubling to $3.11 billion from $1.53 billion in March. However, there was a slight decline in the country's oil imports, totaling $16.46 billion in April compared to $17.23 billion in the previous month, according to government data.

Trade Secretary Barthwal affirmed that the notable increase in gold imports is not unusual but follows the typical trend. He attributed this rise to the growing global demand for gold amidst geopolitical tensions, resulting in higher gold prices. Importantly, he noted that many central banks across the globe are increasing their gold reserves in response to these uncertainties.

The percentage of gold in India's foreign reserves witnessed a significant increase, reaching 8.15 percent by the end of March, compared to 7.37 percent recorded at the end of September. In April, India's services exports amounted to $29.57 billion, with imports totaling $16.97 billion. This contrasts with March figures of $28.54 billion in exports and $15.84 billion in imports.

Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice.

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Source - https://www.business-standard.com/economy/news/india-s-trade-deficit-widens-to-19-1-billion-in-april-commerce-ministry-124051500658_1.html