India’s export growth in October was at a 28-month high of 17.2%, offering hope for recovery.
In November, exports fell sharply by 18.1% compared to October, dropping to $32.1 billion (lowest in over two years).
Imports hit a record high of $70 billion, a 27% year-on-year increase, the fastest in over two years.
Three of the last four months saw record-high import bills, with gold imports jumping 331.5% in November to $14.9 billion.
Gold imports surged due to higher prices and festive demand, but gems and jewellery exports dropped by 10.2%.
Imports of gems and jewellery also rose 30% in November, creating a $14.4 billion deficit in this segment.
India’s merchandise trade deficit reached a new high of $37.8 billion in November, surpassing the export value for the first time.
Petroleum exports halved to $3.7 billion, while imports rose by 7.9% to $16.1 billion.
Economists are puzzled by the rising imports and declining exports despite cheaper Russian oil and growing domestic demand.
Government officials downplay concerns, claiming India’s economy is growing faster than the world and imports support exports.
Policymakers are focusing on non-oil exports, but the rising deficit in oil and jewellery trade needs further attention.
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