Two pieces of trade news out of India on Friday point in the same encouraging direction for the country's exporters.
According to figures reported by The Hindu, India's goods exports jumped twenty three point zero four percent in September compared with a year earlier, while the country's overall trade deficit, the gap between what it imports and what it exports, narrowed over the same period. A shrinking trade deficit alongside rising exports generally signals that a country's exporters are becoming more competitive internationally, or that global demand for its goods is picking up, or both.
Separately, Indian officials indicated that the first tranche of a trade deal between India and the United States has been finalized, with a government official describing the negotiations as moving at an incredible pace. Trade talks between the world's largest democracy and its largest economy have been closely watched for months, as both countries have looked for ways to deepen commercial ties, from technology and pharmaceuticals to agriculture and energy. A phased, tranche by tranche approach, finishing and locking in parts of a deal while continuing to negotiate others, is a common way large, complex trade agreements get done, since it lets both sides bank progress on easier issues while working through harder ones.
India has separately reported a two thirds dependence on just three countries for its oil imports, according to the same roundup of reporting, underscoring how energy supply diversification remains a live policy question even as trade in other goods expands.
Watch for details on what specifically is covered in the finalized first tranche of the India-US deal, and whether September's export strength carries into the final quarter of the year.
What is a trade deficit?
A trade deficit is the gap between the value of goods a country imports and the value it exports; a narrowing deficit generally means exports are catching up to imports.
Why negotiate a trade deal in tranches?
Breaking a large trade negotiation into tranches lets both countries lock in agreement on easier issues first while continuing to work through more difficult ones.