New Delhi, Jan. 16 -- India's merchandise trade deficit contracted to USD 21.94 billion in December from November's record USD31.86 billion, primarily driven by halved gold imports of USD 4.7 billion, according to data released by the commerce department on Wednesday.

The narrowing deficit comes amid a significant downward revision of previous trade figures and mixed performance across export sectors.

December saw merchandise exports decline by 1 percent year-on-year to USD 38.01 billion, reflecting ongoing global geopolitical tensions.

However, electronics exports emerged as a bright spot, surging 35.11 percent to reach a 24-month high of USD 3.58 billion. Imports grew by 4.9 percent year-on-year to USD 59.95 billion but showed a 6 pe...