India’s trade deficit has increased in August due to increased imports and decreased exports. Overall, the trade deficit has increased to $29.65 billion. Whereas in July it was $23.5 billion. The Commerce Ministry has given this information in a press briefing.
Big drop in exports
Exports declined by 9.3% (YoY) in August to $34.7 billion.
While imports grew by 3.3% (YoY) to reach $64.4 billion.
Reasons for reduced exports
In fact, demand is declining in important economic sectors globally. The reason for this is the fear of recession and a decrease in growth rate.
However, there is relief on some fronts. Sunil Barthwal said, ‘Non-gems and jewellery as well as non-petroleum exports are increasing, which is providing some relief.’
Barthwal also said that many other countries are eager to do trade with India and requests for FTAs are coming continuously.
