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India’s goods exports fell by 9.32% to $34.71 billion in August.
Imports rose by 3.3% to a record high of $64.36 billion, driven largely by gold imports.
Gold imports doubled to $10.1 billion, attributed to lower import duties (reduced from 15% to 6%) and seasonal demand for festivities and weddings.
The trade deficit increased to $29.65 billion, the highest in 10 months, marking it as the second-largest monthly deficit in merchandise trade.
Oil imports decreased by 32.4% to $11 billion, and petroleum products saw a 37.6% drop to under $6 billion due to falling global prices.
Exports of gems and jewellery fell by 23.1% to just below $2 billion, affected by sanctions from G7 nations post-Russia-Ukraine conflict.
The sharp trade deficit could lead to a current account deficit of 1.5-2% of GDP for the current quarter, according to ICRA’s chief economist.
Despite challenges, the performance of exports outside gems, jewellery, and petroleum remains strong, indicating resilience in India's trade.
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