India Trade Gap Reaches Fresh High
India posted a record high trade deficit of USD 25.64 billion in June of 2022, preliminary estimates showed.
Imports jumped 50.1% year-on-year to an all-time high of USD 63.58 billion amid rising global commodity prices.
Exports rose at a slower 16.8% to USD 37.94 billion as global economic uncertainty and weak growth prospects weighed on demand.
In the first quarter of the current fiscal year ending June, the trade deficit more than doubled to $70.25 billion from $31.42 billion a year ago.
The declining export and increasing import has put Indian economy in tough spot.
We expect this rising trade deficit will put more upward pressure on Dollar Rupee.
Government is taking all steps to stop sharp up move in the Currency but is unable to turn the tide and bring in more inflows to fill the gap
The ride is going to be bumpy and we should fasten our seatbelts.
Data from https://tradingeconomics.com