Trade balance with Europe moves into deficit in FY24

Sluggish exports growth has created a negative trade balance for the first time after two years

- Rhik Kundu

India's trade balance with Europe has moved into negative territory over the first three-quarters of FY24, with imports exceeding exports during the period. This is a reversal from FY22 and FY23 when the trade balance was positive.

According to data from the Ministry of commerce and Industry, India's trade with Europe stood at a deficit of $1.24 billion during the April-December 2023 period, with exports at $71.68 billion, up 0.66% annually and imports at $72.91 billion, up 6.5% annually.

In FY23, India's trade balance with Europe stood at $7.35 billion, with exports at $98.34 billion, exceeding imports at $90.99 billion. That fiscal, exports to Europe rose by 14.16% annually and imports rose by 5.86%.

Similarly, in FY22, India's exports to Europe rose by 55.71% annually to $86.15 billion, while imports rose 32.09% yearly to $85.96 billion.

India's overall trade balance with Europe during the year was $188 million.

To be sure, world trade had witnessed a slowdown during the pandemic years, in FY20 and FY21, due to lockdowns and other curbs.