India’s April merchandise trade deficit widens on lower exports

INDIA’S merchandise trade deficit in April was wider than expected, hurt by lower exports and a surge in gold imports, government data showed on Wednesday (May 15).

India’s April merchandise trade deficit stood at US$19.1 billion, according to a Reuters calculation, higher than economists’ expectation of US$17.23 billion, according to a Reuters poll. In March it was US$15.6 billion.

India’s merchandise exports in April stood at US$34.99 billion, while imports were US$54.09 billion, government data showed. In March, merchandise exports were US$41.68 billion, while imports stood at US$57.28 billion.

In April gold imports more than doubled to US$3.11 billion, compared with US$1.53 billion in March. The country, which is the world’s third consumer of oil, imported US$16.46 billion worth of oil in April compared with US$17.23 billion, the government said.

“Gold imports are well within the average trend. It is not an exception,” Trade Secretary Sunil Barthwal said.

“Most of the central banks are buying gold because of conflicts. Gold prices have increased and in terms of value imports are appearing to be high.”

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India's industrial output up 4.9% year-on-year in March

The share of gold in India’s foreign reserves rose to 8.15 per cent at end-March from 7.37 per cent at the end of September.

Services exports in April were US$29.57 billion, while imports of US$16.97 billion compared with US$28.54 billion and US$15.84 billion respectively in March. REUTERS