NEW DELHI, Jan 15 Reuters Higher exports helped India39;s merchandise trade deficit come in lower than expected at 19.8 billion in December, data showed on Monday, though officials signalled that the turmoil in the Red Sea could have an impact on this month39;s figures.

Economists polled by Reuters had expected a merchandise trade deficit of 21 billion in December.

There has been a demand upturn in December leading to higher exports. This provides us a cushion as there are uncertainties for trade in January and going forward due to the Red Sea crisis, Trade Secretary Sunil Bharthwal said.

Nearly 80 of India39;s merchandise trade with Europe passes through the Red Sea where shipping has been attacked by Yemen39;s Iranbacked Houthi militants, in a spillover from Israel39;s more than threemonth war with Hamas in Gaza.

Trade ministry official Satya Srinivas told reporters India39;s December exports were not impacted by the Red Sea crisis, but some more recently consignments had been put on hold.

India39;s merchandise exports in December stood at 38.45 billion, while imports were 58.25 billion, government data showed on Monday. In the previous month, merchandise exports were 33.9 billion, while imports stood at 54.48 billion.

Merchandise exports for the period AprilDecember totalled 317.12 billion, while imports for the same period reached 505.15 billion, the data showed. The figures compared with 336.30 billion in exports, and 548.64 billion in imports for the same…