SRINAGAR: The Government has reported significant improvements in India’s trade deficit, driven by targeted measures to enhance exports and regulate imports, the government said in the Lok Sabha on December 17, 2024.
According to Minister of State for Commerce and Industry, Jitin Prasada, India’s overall trade deficit (merchandise and services combined) improved substantially in October 2024, reducing to USD 9.90 billion from USD 15.85 billion in October 2023, marking a 37.5 per cent improvement. The merchandise trade deficit also saw a decline, improving to USD 26.99 billion from USD 30.43 billion in the same period, a reduction of 11.3 per cent.
While gold imports contributed to concerns about the trade deficit, the government highlighted a marginal decline. Gold imports fell to USD 7.12 billion in October 2024 compared to USD 7.23 billion in October 2023, registering a 1.43 per cent decrease. This followed a slight increase in September 2024, when imports rose to USD 4.39 billion from USD 4.11 billion in September 2023.
To manage trade imbalances and promote exports, the government has implemented a series of measures. These include export incentives, streamlined trade processes through digital platforms like Trade Connect e-Portal and Jansunwai, and active negotiations for Free Trade Agreements (FTAs) with key trading partners to increase market access for Indian goods. The government is also closely monitoring export performance through engagement with Export Promotion Councils, Commodity Boards, and State Governments to address challenges and take corrective action as needed.
The government said that the Foreign Trade Policy (2023) has played a pivotal role in boosting competitiveness, positioning India as a reliable trade partner in the global market. The government reported that non-petroleum exports, which reached an all-time high of USD 211.3 billion, continue to contribute significantly to trade growth.
