India’s merchandise trade deficit shrank to $18.78 billion in June, lower than both market expectations and the previous month’s gap, driven by a decline in both exports and imports, according to data released by the Ministry of Commerce & Industry on Tuesday.In a poll by Reuters, economists had pegged the June trade deficit at $22.24 billion, while the actual print was also below the $21.88 billion recorded in May.Merchandise exports came in at $35.14 billion in June, down from $38.73 billion in May. Imports also moderated to $53.92 billion from $60.61 billion a month earlier.On the services side, the country posted a robust surplus of $15.62 billion in June. Services exports were estimated at $32.84 billion, while imports stood at $17.58 billion, the commerce ministry data showed.
