The trajectory of India’s merchandise trade has been rocky for some time. In the midst of this, FY24 has started out somberly. Exports of goods were modest in April, falling sharply by 12.7% year over year (y-o-y). However, imports also suffered a heavy blow, declining by 14.1% year over year.
As global demand declines, the consistent decline in Indian exports is still in the spotlight. But there should also be some treatment of the story’s import side and its recent decline. For the first time in over two years, headline imports were less than $50 billion.
Unsurprisingly, a decline in India’s oil imports was supported by a slowdown in world crude oil prices. Additionally, seasonal considerations, high costs, and higher import levies led to an almost 42% year-over-year reduction. in shipments of gold. But the demand-driven basket known as non-oil, non-gold (NoNG) imports—which excludes gold and oil—has also been declining.
