India's trade deficit shrinks to $20.58 billion in November

India's trade deficit plunged to $20.58 billion in November while Indian exports experienced a milder contraction of 2.8 percent , amounting to $34.89 billion in the corresponding period last year. As per government data, the decline was chiefly propelled by a 4.3 percent decrease in imports , totaling $54.48 billion compared to the previous year's $56.95 billion for the same month.

On the other hand, exports experienced a milder contraction of 2.8 percent , amounting to $33.90 billion , down from $34.89 billion in the corresponding last year. The trade deficit represents the varience between a country's imports and exports over a specified time frame.From April to November in the current fiscal year, exports experienced a decline of 6.51 percent , totaling $278.8 billion . Simultaneously, imports witnessed a downturn of 8.67 percent, reaching $445.15 billion over the eight-month span.

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The export growth is highly commendable for its resilience amid the global economic slowdown due to geopolitical tensions and pandemic era. In October, merchandise exports experienced a notable increase of 6.21 percent reaching $33.57 billion. It is worth noting that despite this positive trend, the trade deficit expanded to a record high of $31.46 billion for the same period.

From February to july , the nation's exports experienced a downturn. Following a reevaluation of figures by the commerce ministry, there was a 3.88 percent positive growth in shipments in August. However , in September, there was a contraction of 2.6 percent. The World Trade Organization predicts a modest 0.8 percent growth in global trade for the year 2023.

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The export sector is facing challenges arising from the geopolitical landscape and other factors such as elevated inflation, economic deceleration in advanced economies, the Russia - Ukraine conflict , tensions between China and Taiwan, China-US relations , and the ongoing Israel- Palestine conflict. Unexpectedly, the World Trade Organization forecasts global trade to grow only by 0.8 percent in 2023, which is surely indicating a matter of concern.

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