Trade deficit falls YoY in Sept 2023, alongside decline in key merchandise export 

India's trade deficit in September 2023 marked a significant year-on-year reduction, decreasing from $15.03 billion in September 2022 to $4.92 billion. However, this decline in the trade deficit was mirrored by a decrease in overall merchandise exports, falling from $35.39 billion in September 2022 to $34.47 billion in September 2023. The Commerce Ministry attributed this export decline to weakened global demand and other contributing factors.

Citing a decline in unit value realisation from export of petroleum products from $1094.28/ton last year to $727.76/ton this year, the Ministry said that despite a rise noted in the volume of petroleum exports compared to last year, the amount being reflected in trade data was far lesser due to decline in global prices.

The government attributed the decline in exports of gems and jewellery to lower global demand, issues in sourcing of diamonds and a huge duty on gold imports apart from geopolitical factors like the conflicts between Russia and Ukraine, and Israel and Palestine.