Red Sea unrest hits India’s foreign trade
Merchandise trade deficit narrowed to a 9-mth low of $17.49 bn; Banks told to extend credit to exporters
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New Delhi: India’s exports increased 3.12 per cent on-year to $36.92 billion in January, according to the data released by the government on Thursday. Imports rose by about three per cent year-on-year to $54.41 billion in January this year. Trade deficit in January, 2024 stood at $17.49 billion. The merchandise trade deficit narrowed to a 9-month low of $17.49 billion which reflected a strengthening of the macroeconomic fundamentals of the country that will help to reduce pressure on the rupee.
Commerce Secretary Sunil Barthwal said that ”despite the Red Sea crisis, recession in economies of advanced countries, and falling commodity prices, India has recorded positive growth in merchandise exports in January. We also try to tell banks that whatever maximum credit can be given during this period to our exporters that should be extended.”
