India's Trade Deficit Narrows to $21.94 Billion in December as Gold Imports Decline

In December 2024, India's merchandise trade deficit decreased to $21.94 billion, a significant improvement from the record $37.84 billion deficit reported in November.This reduction is largely attributed to a substantial decline in gold imports, which fell to $4.7 billion in December from an unprecedented $14.8 billion in November.The surge in November's gold imports was driven by festive and wedding season demand, which subsequently tapered off in December. Additionally, the Ministry of Commerce and Industry revised the gold import figures for April-November 2024, correcting an overestimation that had previously inflated the trade deficit.These adjustments have contributed to a more accurate representation of India's trade balance, reflecting improved economic stability.

Source:Reuters