New Delhi, Jan 15 (FN Agency) India posted a narrower-than-expected merchandise trade deficit (INTRD=ECI), opens new tab in December at $21.94 billion on Wednesday, while lowering its import figures for April-November following an unprecedented miscalculation in gold shipments. Economists had expected the December trade deficit to be $27.33 billion a poll. Merchandise exports stood at $38.01 billion in December, while imports stood at $59.95 billion, government data showed. India’s trade ministry last week scrambled to correct monthly import figures for precious metals including gold from April to November.
The trade ministry has yet to release the revised figures for November, which had over-counted gold imports by $5 billion, boosting the trade deficit to a record high. As part of the correction, India sharply lowered its April-November 2024 gold import estimate by $11.7 billion. According to a Reuters calculation, the April-November trade deficit was revised down by $13.59 billion to $188.83 billion. In December, India imported $4.7 billion worth of gold and $15.2 billion worth of oil. India is the world’s second-largest consumer of gold and relies on imports to meet most of its demand, which typically increases in the year-end. The country also imports 80% of its crude oil needs.
The government has formed a panel to ensure robust trade data is provided following the errors, Trade Secretary Sunil Barthwal said, which will have implications for calculations of key macroeconomic data including current account deficit and economic output. The government is still reviewing the trade data, which is expected to be completed in the next month, a government official, who did not want to be named, told reporters.