(Bloomberg) -- India’s trade deficit narrowed to the lowest in five months in September as the nation’s import bill declined due to moderation in inbound shipments of gold.
The gap between imports and exports stood at $20.78 billion in September, Trade Ministry data showed Wednesday, lower than the $24.63 billion deficit forecast by economists in a Bloomberg survey. India reported a trade deficit of $29.6 billion in August.
Imports grew 1.6% from a year earlier to $55.36 billion in September, while exports rose 0.5% to $34.58 billion during the month. Inbound shipments were $64.36 billion in August, while outbound shipments stood at $34.71 billion.
Gold imports fell to $4.39 billion in September, from a record high of $10.06 billion the previous month, while crude oil imports rose to $12.5 billion from $11.01 billion in August, the data showed.
Indian exports “are in a positive territory” on account of growth in outbound shipments of ready-made garments and electronic goods, Commerce Secretary Sunil Barthwal told reporters in New Delhi.
The escalating conflict in Middle East poses a significant threat to the global trade, with potential disruptions to supply chains and higher freight costs. Last week, the World Trade Organization lowered its projection of merchandise trade growth to 3% in 2025, from its earlier estimate of 3.3%.
--With assistance from Shruti Srivastava.
(Updates with additional details and a chart. A previous version of this story was corrected to fix the size and scope.)
©2024 Bloomberg L.P.