India’s trade deficit improved in 2023-24, but it needs to watch its FTAs to fix persistent imbalances

News Snapshot:

India’s imports of crude oil and petroleum products, accounting for roughly 27 percent of the merchandise imports, declined by 14 percent last year. The decline can be attributed to a moderation in global crude oil prices in 2023-24. Compared to merchandise exports, India’s merchandise imports fell more steeply by 5.6 percent in 2023-24, primarily because of the correction in global commodity prices from the highs of 2022-23. This led to an improvement in India’s trade balance in 2023-24. India’s overall exports reached USD 778.2 billion in 2023-24, compared to USD 776.4 billion in 2022-23. While the country’s merchandise exports dipped...