IANS | 15 Feb, 2024
India's exports rose by 3.1 per cent in January to $36.92 billion
compared to $35.8 billion in the same month of the previous year despite
the geopolitical crisis in the Red Sea region that has disrupted the
global ship movement, data released by the Commerce Ministry on Thursday
showed.
The country’s merchandise imports also increased by 3.0
per cent in January 2024 to $54.41 billion but were lower than $58.25
billion in December 2023.
The merchandise trade deficit narrowed
to a 9-month low of $17.49 billion which reflected a strengthening of
the macroeconomic fundamentals of the country that will help to reduce
pressure on the rupee.
The merchandise trade deficit stood at $19.80 billion in December 2023.
The
attacks on merchant ships by Houthi rebels around the Red Sea have
disrupted trade as shipments now have to be sent through the longer
route via the Cape of Good Hope on the southern tip of Africa which has
led to increase in transport costs. This has also slowed the overall
movement of goods.
Around 80 per cent of India's goods trade with
Europe, estimated at nearly $14 billion a month, normally passes via the
Red Sea, according to the government data. These goods now have to
traverse around 5,000 additional nautical miles on the longer route via
Africa which takes another 15 days or so.
