India’s merchandise trade deficit moderated to USD 21.0 bn in Jun-24 from USD 23.8 bn in May-24

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Jul 15, 2024

QuantEco Research || Jun-24 Merchandise Trade - Deficit remains ranged

India’s merchandise trade deficit moderated to USD 21.0 bn in Jun-24 from USD 23.8 bn in May-24. The sequential moderation in merchandise trade deficit was led by easing of the petroleum trade deficit. Notwithstanding the monthly moderation in Jun-24, India’s merchandise trade deficit is depicting signs of a modest widening on FYTD basis. This is broadly in line with our expectation as we see range-bound movement in international commodity prices along with a moderate recovery in prospects of global trade to 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.