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India's September Trade Deficit Soars To Record $22.6 Billion
Writer: Neelima Mishra
Guru Govind Singh Indraprashtha University in New Delhi is where Neelima Mishra is doing her master's degree. She graduated from Delhi University with a bachelor's degree in journalism (hons.). She is pursuing a corporate communication specialisation at IP University.
India, 19 Oct 2021 11:41 AM GMT | Updated 13 Dec 2021 10:08 AM GMT
Editor : Madhusree Goswami |
A mountain girl trying to make it big in the city. She loves to travel and explore and hence keen on doing on-ground stories. Giving the crux of the matter through her editing skills is her way to pay back the journalism its due credit.
Creatives : Neelima Mishra
Guru Govind Singh Indraprashtha University in New Delhi is where Neelima Mishra is doing her master's degree. She graduated from Delhi University with a bachelor's degree in journalism (hons.). She is pursuing a corporate communication specialisation at IP University.
India's merchandise exports increased to $33.8 billion in September, up from $27.56 billion the previous month, while crude oil and gold purchases lifted imports to $56.39 billion in September, up from $30.52 billion the previous month.
According to government data released last week, India's merchandise trade imbalance widened to a record $22.6 billion in September, the largest in at least 14 years, as crude oil and gold imports soared.
The Reserve Bank of India is unlikely to be troubled by the rising trade deficit because the trade surplus in services and entry of foreign capital into the stock and debt markets have offered a cushion. At the end of September, India's foreign exchange reserves had surpassed $637 billion, reported Economic Times.
According to figures issued previously by the country's central bank, the current account surplus in the April-June quarter was $6.5 billion. Aditi Nayar, chief economist of ICRA, the Indian branch of rating agency Moody's, said the strong increase in the merchandise trade deficit reflected advance purchases to build up stocks ahead of the Christmas season and greater oil imports to somewhat offset rising prices. "The trade imbalance is likely to decline in coming months," she added, adding that in the second half of the current fiscal year, which ends in March 2022, it might fall to between $13 billion and $16 billion each month.
Expansion In Exports In Country
India's merchandise exports increased to $33.8 billion in September, up from $27.56 billion the previous month, while crude oil and gold purchases lifted imports to $56.39 billion in September, up from $30.52 billion the previous month.
Oil imports increased nearly thrice to $17.44 billion in September, up from $5.83 billion the previous month, and gold imports increased nearly threefold to $5.1 billion, up from $601 million.
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