India’s trade deficit narrowed to a five-month low of $20.8 billion in September from $29.7 billion a month back, according to data released on October 16, as merchandise export growth turned positive for the first time in three months.

Exports were down 0.5 percent as against a 9.4 percent decline in the previous month. Imports, on the other hand, were up 1.6 percent, compared with 2.8 percent growth seen in August.

The trade data diverges from the trends in manufacturing PMI, which had indicated a weakening of external conditions leading to a decline in manufacturing activity to its lowest level in eight months.

For the first six months of the fiscal year 2024-25, exports were 1 percent higher, while imports were up 6.1 percent.