India’s exports rose marginally by 1.62 percent to $33.92 billion in August over the same month a year ago, according to government data released on Wednesday.
Imports, however, surged by 37.28 per cent to $61.9 billion in August this year, leaving a trade deficit of $27.98 billion which is more than double when compared to August 2021.
Trade deficit in August 2021 stood at $11.71 billion.
During April-August 2022-23, exports grew by 17.68 per cent to $193.51 billion. Imports during the five-month period of this fiscal rose by 45.74 per cent to $318 billion.
Trade deficit widened to $124.52 billion in April-August this fiscal as against $53.78 billion in the same period last year.
“Though the August print marks a moderation from July’s record trade deficit, the deficit remains at unsustainably high levels, and is likely to raise financing concerns,” Rahul Bajoria, chief India economist said in a note. Bajoria forecast India’s current account deficit (CAD) will rise to $115 billion (3.3% of GDP) in FY22-23. “With the trade deficit staying at uncomfortably elevated levels, we acknowledge upside risk to our current account deficit forecasts, despite the recent fall in commod ..
“India’s trade deficit contracted… driven by a lower oil trade deficit as oil imports contracted more than exports,” Goldman Sachs economist Santanu Sengupta said. Oil imports declined by $3.5bn to $17.6 billion from $21.1 billion in July.
