Now Reading: India’s trade deficit hits 6-month high at $31.98 bn in July
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India’s trade deficit hits 6-month high at $31.98 bn in July
India's trade deficit widened to a six-month high of $31.98 billion in July, up from $30.42 billion in June and $27.88 billion a year earlier, according to commerce ministry data released on…
The Story in Brief
India's trade deficit widened to a six-month high of $31.98 billion in July, up from $30.42 billion in June and $27.88 billion a year earlier, according to commerce ministry data released on Thursday. Goods imports hit a nine-month high of $76.22 billion, driven by a surge in crude oil (up 18% year-on-year to $18.31 billion), electronic goods (up 46% to $14.37 billion), fertilisers (up 55%) and coal (up 29%). Goods exports jumped nearly 20% to $44.24 billion, with engineering goods, electronics and petroleum products leading the rise.
The Indian Opinion
The sharp spike in the trade deficit has revived familiar hand-wringing about import dependence, but the data tells a more balanced story. Imports of crude oil, electronics and fertilisers also reflect a growing economy and a rebound in domestic activity. The real test is whether exports sustain their 20% growth. If the deficit narrows in August without a drop in exports, the panic will prove premature. Watch the current account numbers due from the RBI later this month.
Source: rediff.com
This story was synthesised by AI from the source linked above.
