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yesterday

India’s June Trade Deficit Narrows to $18.78 Billion

Strong services earnings this quarter reflect policy reforms easing the goods shortfall through lower oil and gold import bills.

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Trade Deficit Shrinks | Image: Pexels
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Overview

  • Merchandise deficit fell to $18.78 billion in June from $21.88 billion in May as imports dropped 3.7 percent to $53.92 billion and exports held steady at $35.14 billion.
  • Services trade delivered a $15.62 billion surplus in June with $32.84 billion in exports underpinning a 6 percent rise in overall Q1 exports to $210.3 billion.
  • Goods exports to the United States surged 23.5 percent to $8.3 billion in June even as imports from the US fell 10.6 percent to $4 billion while New Delhi seeks an interim tariff exemption under ongoing trade talks.
  • The government is expanding Production Linked Incentive schemes across 14 sectors and advancing free-trade negotiations with the US, EU, UK and UAE to support a $1 trillion export goal.
  • Heightened tariff threats, Middle East shipping disruptions and commodity price swings have prompted New Delhi to diversify trade partnerships and strengthen domestic supply chains.