New Delhi: While the Indian Rupee is falling to its lowest level in history against the US Dollar, there are reports of a year-on-year decline in India’s exports in the month of December. India’s exports have declined for the second consecutive month. India’s exports in December 2024 have been $38.01 billion, which has decreased by one percent as compared to 2023. There has been a decline of 4.85 percent in exports in the month of November. Imports increased by five percent to $59.95 billion in December. The trade deficit (exports versus imports) in December stood at $21.94 billion.
In the nine-month period from April to December, India’s exports increased by only 1.6 percent to $321.71 billion and imports increased by 5.15 percent to $532.48 billion. Thus, the deficit in nine months has been $210.77 billion compared to $189.74 billion last year. Exports of petroleum products declined by 28.62 percent to $4.91 billion in the month of December, whereas in the first nine months of the financial year, exports had fallen by 20.84 percent. Apart from this, a decline has also been seen in the export of items like gems and jewellery, chemicals etc. this month. However, exports of commodities such as textiles, electronics, rice have seen growth. Commerce Secretary Sunil Bharatwal said that India’s exports are stronger than other countries. He said that except petroleum products, the situation of other exports is much better. When Indian exports are under threat due to global factors, the Commerce Ministry has started a campaign to emphasize exports by starting a program called Mission 20. The share of these 20 countries in India’s total exports is 60 percent.
At the same time, on Monday, the rupee reached its lowest level of 86.70 against the dollar. Devaluation of the Indian currency makes imports costlier while exporters benefit. Since exports in India are less than imports, it is a challenge for the overall economy. The rupee has declined by 2.34 percent against the dollar in December 2024 compared to December 2023, while it has seen a decline of 0.06 percent against the Chinese yuan. According to a recent report released by an organization called Global Trade Research Initiative (GTRI), if the rupee weakens against the dollar, India’s imports will increase by $ 15 billion. Apart from this, India imports industrial goods worth 100 billion dollars from China annually. The weakening of the rupee against the yuan will also have an impact.
