Lok Sabha Question No. 3561 (UNSTARRED), answered on 2024-12-17
Subject: Reducing Trade Deficit
Ministry: COMMERCE AND INDUSTRY
Asked by: Adv. Adoor Prakash

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 3561 ANSWERED ON 17/12/2024

## REDUCING TRADE DEFICIT

## 3561.  ADV. ADOOR PRAKASH:

Will  the  Minister  of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be  pleased  to state:

(a) the  details  of  the  actions  being  taken  by  the  Government  to  address  the  rising  trade deficit,  which  widened  to  USD  27.14  billion  in  October  due  to  a  3.9  per  cent  increase  in imports, particularly driven by higher gold and petroleum imports;

(b) whether the Government intends to take further action to regulate and reduce the import of gold, which saw a significant increase in imports in September 2024;

(c) if so, the manner in which to manage the impact of gold imports on India's trade balance; and

(d) the details of the steps taken to continue promoting non-petroleum exports, which have reached an all-time high of USD 211.3 billion?

## ANSWER

## वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) Trade  deficit  (Merchandise  +  Services)  improved  significantly  in  October  2024  with USD 9.90 Billion as compared to USD 15.85 Billion in October 2023, an improvement of 37.5 percent in October 2024. The merchandise trade deficit in October 2024 has also improved to USD 26.99 billion as compared to USD 30.43 billion in October 2023, registering a decline of 11.30 percent. Moreover, during October 2024, the imports of gold were USD 7.12 billion as compared to USD 7.23 billion in October 2023, registering a decline of 1.43 percent.

(b) & (c) The import of gold increased slightly from USD 4.11 billion in September 2023 to  USD  4.39  billion  in  September  2024.  However,  in  October  2024,  the  import  of  gold  has declined to USD 7.13 billion as compared to USD 7.23 billion in October 2023, registering a decline of 1.43 percent.

(d) Several steps have been taken by the Government to boost exports. Some of the measures include  providing  export  incentives,  easing  trade  processes  through  digital  platforms  such  as

Trade Connect e-Portal, Jansunwai and negotiating free trade agreements (FTAs) with various countries and trading blocs to enhance market access for Indian products. Regular monitoring of export performance with Commercial Missions abroad, Export Promotion Councils, Commodity Boards/  Authorities  and  Industry  Associations  and  for  taking  corrective  measures  as  required from time to  time.  The Department  has  been  actively  interacting  and  engaging  with  the  State Governments/Union Territories / Districts to create an enabling environment to boost goods and services exports. Further, new Foreign Trade Policy (2023) lays down a blue print to integrate India  with  the  global  market  and  make  it  a  reliable  and  trusted  trade  partner.  It  will  further improve India's trade performance and competitiveness.

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