<p>New Delhi: India’s trade deficit jumped to record high of $37.84 billion in November as festive and marriage-related demand for gold pushed import bills to an all-time high while the country’s outbound shipments declined, official data showed on Monday.</p>.<p>There was a record import of gold during the month of November, at $14.8 billion. “Such high levels of gold imports were likely driven by festive and marriage-related demand,” said Aditi Nayar, Chief Economist at Icra Ltd</p>.<p>November’s import bill soared to an all-time high of $69.95 billion, which is 27 per cent higher when compared with the same month last year. This is the third time in four months that import has hit a record high. In October it touched a then high of $66.34 billion.</p>.<p>On the other hand, after a surprise 17.3 per cent year-on-year jump in October, the country’s exports posted a decline of 4.83 per cent in November. The value of merchandise exports declined to $32.11 billion, lower on a year-on-year as well as on a month-on-month basis.</p>.<p>“An unprecedented fall in petroleum products prices has pulled down goods exports in November," Commerce Secretary Sunil Barthwal told reporters. He pointed out that non-petroleum exports have grown at a comfortable pace.</p>.<p>The value of non-petroleum exports increased to $28.4 billion in November from $26.36 billion in the same month last year. Non-petroleum imports surged from $40.13 billion to $53.84 billion in November 2024, year-on-year.</p>.<p>A higher trade deficit is likely to put further pressure on the rupee, which has weakened by nearly 2 per cent against the US dollar since the beginning of 2024. Nayar said the latest adverse trade deficit print would result in a sharper-than-expected widening in India’s current account deficit in October-December quarter to 2.8 per cent of GDP as against earlier expectations of 2 per cent.</p>.Rise in gold purchase anticipated after cut in gold import duties.<p>The ongoing international trade disruptions, along with the volatility in crude and metal prices have also played a key role in the declining value of exports to some extent, said Federation of Indian Export Organisations (FIEO) President Ashwani Kumar.</p>.<p>“The rising tensions between Israel-Iran has continuously led to logistical challenges with regard to international trade getting impacted as most of our trade to Europe, Africa, CIS and Gulf region are happening through the Red Sea route or the gulf region prompting buyers to have little large inventories,” Kumar said.</p>.<p>The value of India’s total exports (merchandise and services combined) for November stood at $67.79 billion, which is 9.59 per cent higher when compared with the same month last year. This was due to a healthy increase in services exports.</p>
<p>New Delhi: India’s trade deficit jumped to record high of $37.84 billion in November as festive and marriage-related demand for gold pushed import bills to an all-time high while the country’s outbound shipments declined, official data showed on Monday.</p>.<p>There was a record import of gold during the month of November, at $14.8 billion. “Such high levels of gold imports were likely driven by festive and marriage-related demand,” said Aditi Nayar, Chief Economist at Icra Ltd</p>.<p>November’s import bill soared to an all-time high of $69.95 billion, which is 27 per cent higher when compared with the same month last year. This is the third time in four months that import has hit a record high. In October it touched a then high of $66.34 billion.</p>.<p>On the other hand, after a surprise 17.3 per cent year-on-year jump in October, the country’s exports posted a decline of 4.83 per cent in November. The value of merchandise exports declined to $32.11 billion, lower on a year-on-year as well as on a month-on-month basis.</p>.<p>“An unprecedented fall in petroleum products prices has pulled down goods exports in November," Commerce Secretary Sunil Barthwal told reporters. He pointed out that non-petroleum exports have grown at a comfortable pace.</p>.<p>The value of non-petroleum exports increased to $28.4 billion in November from $26.36 billion in the same month last year. Non-petroleum imports surged from $40.13 billion to $53.84 billion in November 2024, year-on-year.</p>.<p>A higher trade deficit is likely to put further pressure on the rupee, which has weakened by nearly 2 per cent against the US dollar since the beginning of 2024. Nayar said the latest adverse trade deficit print would result in a sharper-than-expected widening in India’s current account deficit in October-December quarter to 2.8 per cent of GDP as against earlier expectations of 2 per cent.</p>.Rise in gold purchase anticipated after cut in gold import duties.<p>The ongoing international trade disruptions, along with the volatility in crude and metal prices have also played a key role in the declining value of exports to some extent, said Federation of Indian Export Organisations (FIEO) President Ashwani Kumar.</p>.<p>“The rising tensions between Israel-Iran has continuously led to logistical challenges with regard to international trade getting impacted as most of our trade to Europe, Africa, CIS and Gulf region are happening through the Red Sea route or the gulf region prompting buyers to have little large inventories,” Kumar said.</p>.<p>The value of India’s total exports (merchandise and services combined) for November stood at $67.79 billion, which is 9.59 per cent higher when compared with the same month last year. This was due to a healthy increase in services exports.</p>