New Delhi, Jan 15
India's trade deficit narrowed to $21.94 billion in December compared to the corresponding figure of $32.84 billion for November, as exports grew while imports declined on a month-to-month basis.
Merchandise exports in December increased to $38.01 billion compared to $32.11 billion in November, while imports declined to $59.95 billion from $64.95 billion in November.
However, on a year-on-year basis, the trade gap widened during December compared to $18.76 billion in December 2023. The merchandise exports declined by 1 per cent in December 2024 from $38.39 billion in the same month of the previous year while imports rose by 4.8 per cent from $57.15 billion in December 2023.
Meanwhile, in a silver lining for the day, the Indian rupee rebounded on Wednesday to post its highest single-day rise in 7 months to close at 86.3625 against the US dollar, which represents a 0.3 per cent increase over the previous day’s lifetime low of 86.6475. A weaker US dollar and the fact that foreign banks sold more dollars helped the rupee to bounce back, according to experts.