India’s merchandise trade deficit rose to a 9-month high of USD 23.5 bn in Jul-24 from USD 21.0 bn in Jun-24
Download ReportQuantEco Research || Jul-24 Merchandise Trade - Deficit widens to a 9-month high
India’s merchandise trade deficit rose to a 9-month high of USD 23.5 bn in Jul-24 from USD 21.0 bn in Jun-24. The sequential widening of merchandise trade deficit was led by miscellaneous products and electronic items, while the trade surplus from machinery items moderated. India’s merchandise trade deficit is depicting signs of a moderate widening on FYTD basis. Range-bound movement in international commodity prices along with a moderate recovery in prospects of global trade would likely result in a minor uptick in the current account deficit to 0.9% of GDP in FY25 from 0.7% in FY24. Having said, uncertainties continue to persist in the form of geopolitical risks, even as better than expected global growth momentum would play a supportive role. In addition, the custom duty reductions announced in the FY25 Union Budget could potentially provide some upside risk to our annualized trade deficit forecast.