Exports increased 1 per cent to $38.45 billion in December, according to the data released by the government. Imports declined 4.85 per cent to $58.25 billion.

Merchandise trade deficit narrowed to $19.8 billion compared with $23.14 billion in the same month in 2022, led by a rise in outbound shipments of engineering goods, gems and jewellery, and electronic goods, the commerce ministry said.

During April-December this fiscal, exports dipped by 5.7 per cent to $317.12 billion. Imports slipped by 7.93 per cent to $505.15 billion.

Merchandise trade deficit for April-December 2023 was estimated at $188.02 billion against $212.34 billion during April-December 2022.

Commerce secretary Sunil Barthwal said despite a global slowdown, Indian trade is in the positive zone. India’s overall exports (merchandise and services combined) in
December 2023 is estimated to be $66.33 billion, contracting 4.25 per cent over December 2022.

Overall imports in December 2023 is estimated to be $71.50 billion, exhibiting a negative growth of 7.18 per cent year-on-year.

Barthwal said that overall exports in FY24 — services and goods — should certainly be higher than last year’s level. However, India’s services exports, that has had an impressive run so far, is estimated to contract by 10.61 per cent in December 2023 compared with the same month of 2022. But for April-December, it is projected to grow positively at 3.52 per cent year-on year.