India’s merchandise trade deficit narrowed to USD 20.6 bn in Nov-23 from its record high level of USD 29.9 bn in Oct-23.
Download ReportQuantEco Research || Nov-23 Merchandise Trade - What went up, came down
India’s merchandise trade deficit narrowed to USD 20.6 bn in Nov-23 from its record high level of USD 29.9 bn in Oct-23. The sequential easing of trade deficit was on account of moderation in petroleum and gems & jewellery deficits. In contrast, the core trade deficit inched up a tad. Sizeable volatility in non-core trade deficit in last two months is unusual and reflects the impact from one-off factors along with idiosyncrasies of India’s festive season calendar. We continue to believe that the merchandise trade deficit in H2 FY24 would be wider in comparison to H1 FY24. However, there could now be some downside risk to our FY24 current account deficit forecast of USD 67 bn as international commodity prices have softened while downward revision to monthly trade deficit data continues.