India’s trade deficit hits an all-time high of $37.84 billion in November, and gold imports reach a record high of $14.8 billion.

India’s exports in November contracted by 4.85% year-on-year to $32.11 billion, while the trade deficit widened to an all-time high of $37.84 billion due to a record rise in gold imports. This recession came after double-digit growth was recorded in October.

According to Commerce Ministry data, imports rose 27 percent year-on-year to a record $69.95 billion in November due to higher incoming shipments of vegetable oils, fertilizers and silver.

Gold imports during the month under review rose to an all-time high of $14.8 billion versus $3.5 billion in November 2023.

Cumulatively, during the April-November period of this fiscal year, exports increased by 2.17 percent to $284.31 billion and imports by 8.35 percent to $486.73 billion.

The trade deficit, i.e. the difference between imports and exports, widened during the period from April to November 2023 to $202.42 billion, compared to $170.98 billion during the period from April to November 2023.

While briefing on the data, Commerce Minister Sunil Barthwal said that fluctuations in oil prices are affecting exports.

Shipments of petroleum products fell by about 50 percent to $3.71 billion last month. During the first eight months of this fiscal year as well, these exports shrank by 19 percent year-on-year to $44.6 billion.

However, the minister said non-oil exports are still registering healthy growth and this along with the services sector will help the country cross $800 billion in total exports by the end of this fiscal year.

Regarding the rising trade deficit and imports, the minister said that one should not be concerned about this as the country grows.

He also said that the ministry is focusing on 20 countries and six service and manufacturing sectors including IT/IT services to boost shipments. In these 20 countries, there is huge potential to increase exports and to tap this, the Ministry is reaching out to Indian missions abroad.

The Ministry calls for a meeting with these missions in January next year. “We will develop a strategy on how to improve exports in the 20 countries,” Barthwal said.

According to estimates, services exports in November 2024 rose to $35.67 billion compared to $28.11 billion in November 2023. These exports reached an all-time high of $34.31 billion in October, registering a 22.3 percent increase year-on-year.

Crude oil imports rose last month by 7.9 percent to $16.11 billion.

On the export front, the main sectors that recorded negative growth during the month under review included oil meals, iron ore, coal, gemstones, jewellery, chemicals and handicrafts.

However, the sectors that registered positive growth are textiles, engineering goods, electronics, pharmaceuticals and spices.

Raw cotton waste used in the textile industry saw imports rise from $30.61 million in November 2023 to $170.73 million last month.