India goods trade deficit eases to $30 bn, goods exports jump 23%, services log rare dip

India's goods trade deficit narrowed to $30.2 billion in September, driven by a 23% surge in exports to the US. Meanwhile, services exports experienced a rare decline. The Commerce and Industry Ministry reported that goods exports jumped to $44.40 billion, up from $36.08 billion a year earlier, while imports grew at a slower pace of 8% to $74.61 billion.

The trade deficit eased in part due to a sharp decline in gold imports, which dropped 81.3% to $1.8 billion from $9.6 billion in the previous year. Aditi Nayar, Chief Economist at ICRA, noted that India's goods exports grew by over 20% for the second consecutive month in September, despite a slowdown in import growth. US exports accounted for a significant portion of the increase, with a 48% jump to $8 billion.

Commerce Minister Piyush Goyal announced that the first phase of the India-US trade pact has been finalized and is undergoing legal drafting. Meanwhile, services exports fell to $36.35 billion, as global service trade growth slowed amid the West Asia crisis and higher energy costs.