NEW DELHI (Reuters) – India’s merchandise trade deficit in August widened to $29.65 billion as merchandise exports fell, dragged down by rising shipping costs and a decline in global demand, data released by the government showed on Tuesday.
Economists had expected the country’s August trade deficit to be $23 billion, according to a Reuters poll. The deficit stood at $23.5 billion in the previous month.
India’s merchandise exports declined to $34.71 billion in August from $38.28 billion a year ago, while imports were at $64.36 billion, up from $62.30 billion in August 2023, government data showed.
In July, merchandise exports were $33.98 billion, while imports stood at $57.48 billion.
“Exports are facing huge challenge on current global circumstances,” Trade Secretary Sunil Barthwal told reporters in New Delhi, referring to rising shipping costs and the slowdown in China.
Services exports in August were $30.69 billion, while services imports were at $15.70 billion compared with $28.71 billion and $15.09 billion, respectively, a year ago.
(Reporting by Shivangi Acharya;Editing by Nivedita Bhattacharjee)
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