Trade deficit declines in December

India’s merchandise trade in December grew by 1% to $38.45bn, with import declines contributing to a reduced trade deficit, according to the commerce ministry. The disruption in the Red Sea trade route caused by Houthi rebels in Yemen affected 80% of India’s merchandise trade with Europe. While the first nine months of the 2023-24 financial year saw a 5.7% decrease in exports to $317.12bn, the commerce secretary said the three months to March were typically stronger for trade. The government hopes to find solutions for trade disruptions and explore opportunities for exporting affected inventories.