India’s merchandise trade deficit at US$20.67 billion in July
INDIA’S merchandise trade deficit in July stood at US$20.67 billion, according to a Reuters calculation based on export and import data released by the government on Monday (Aug 14).
Economists had expected a July trade deficit of US$21 billion, according to a Reuters poll.
Merchandise exports stood at US$32.25 billion, while imports were US$52.92 billion in July, the government data showed.
The previous month, merchandise exports were US$32.97 billion, while imports stood at US$53.10 billion.
“Global headwinds (are) still there, and we are looking to find ways to mitigate that,” Commerce Secretary Sunil Barthwal told reporters. “Negative export growth in big economies like China are impacting India as well.”
Russia emerged as the second-biggest goods seller to India in the April-to-July period, with exports nearly doubling to US$20.45 billion during the period from US$10.42 billion during the same period last year, the data showed.
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The import bill for the world’s third-biggest consumer of oil is getting pricier, due to an upswing in international prices and the falling rupee against the US dollar. India has been gorging on Russian oil since the West imposed sanctions on Moscow for its invasion of Ukraine, helping it climb from the position of 18th biggest supplier of goods to India before the war.
The crude oil basket has averaged US$80.37 a barrel in July compared to US$74.93 in June, according to oil ministry data. The rupee slid past 83 per US dollar for the first time since October last year, and is seen heading lower amid broader strength in the greenback.
Elevated interest rates and inflationary pressures in developed economies such as the US and EU have slowed demand for Indian goods, leading to fewer shipments.
China remained the biggest supplier of goods to India, even with imports falling to US$32.70 billion from US$34.55 billion.
Services exports, driven by information technology and business consulting work, remained a bright spot. They stood at US$27.17 billion in July, while imports were US$14.85 billion. In June, services exports were US$27.12 billion and imports were US$15.88 billion.
For the April-to-July period, services and merchandise exports fell about 6 per cent year on year to US$244.15 billion, while imports fell 11 per cent to US$272.41 billion.
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