Merchandise exports decline 1% on-year, while imports increase 4.9%

India’s merchandise exports fell 1% on-year to $38.01 billion in December 2024 - after shrinking 4.8% in the previous month - driven by gems and jewellery (-26.5%) and oil (-28.6%).

That said, core1 export growth of 8.3%, though lower than 11.8% in the previous month, arrested the decline. Within the core category, export growth was strong for readymade garments, ores and minerals, handicrafts, and coffee.

The contraction in merchandise exports for the second consecutive month led to average growth of -3.3% on-year in the third quarter of this fiscal.

Brent crude oil prices averaged $73.8 per barrel in December - down from $77.9 per barrel a year ago - which may have contributed to the decrease in oil exports.

While merchandise exports contracted, merchandise imports increased 4.9% on-year to $59.95 bn led by the gems and jewellery category (19.6% growth on-year). In this category, gold imports grew 55.4% and silver imports jumped 211%.On the other hand, core import growth decelerated to 3.9%, from 6.1% in the previous month.

Merchandise trade deficit widened to $21.9 billion in December from $18.8 billion in the year-ago period but narrowed from $32.82 billion in the previous month.

The latest Reserve Bank of India (RBI) data shows that services exports grew 13.9% on-year in November (vs 22.3% in October), while services imports rose 26% (vs 27.9%). Consequently, services trade surplus stood at $14.8 billion (stablevs $14.4 billion in the year-ago period and down from $17.1 billion in the previous month).