Merchandise trade deficit more than doubles to $28 bn in Aug

India’s merchandise trade deficit in August widened to $27.98 billion from $11.71 billion a year ago, according to revised data released by the commerce and industry ministry on Wednesday.

Merchandise exports climbed to $33.92 billion from $33.38 billion in August 2021, while imports surged to $61.90 billion from $45.09 billion in the same period.

Commerce secretary B.V.R. Subrahmanyam had earlier said that India’s merchandise exports are expected to touch $470-480 billion in the current financial year, compared with $420 billion in FY22.

He had also said that the trade deficit, which crossed $100 billion during April-July of the current fiscal, would moderate in coming months.

Exports during April-August rose 17.7% to $193.51 billion from the year-ago period, while imports during the five months grew 45.7% to $318 billion.

India’s exports rose marginally by 1.62% to $33.92 billion, while the trade deficit more than doubled to $27.98 billion in August due to increased crude oil imports, commerce ministry data said on Wednesday.

The revised data showed that imports rose by 37.28% to $61.9 billion in August.

The preliminary data released by the ministry on 3 September had shown a 1.15% decline in exports to $33 billion in August.

During April-August of FY23, exports registered a growth of 17.68% to $193.51 billion, while imports grew by 45.74% to $318 billion.

The trade deficit widened to $124.52 billion in April-August this fiscal as against $53.78 billion in the same period last year.

The deficit in August last year was $11.71 billion.

Crude oil imports in August this year increased by 87.44% to $17.7 billion. However, gold imports dipped by about 47% to $3.57 billion, the data showed.

On the other hand, silver imports jumped to $684.34 million during the month under review from $15.49 million in the same month last year.

A rise in import values in August has been witnessed in major commodity groups such as coal, coke and briquettes (133.64% to $4.5 billion), chemicals (43% to about $3 billion), and vegetable oil (41.55% to about $2 billion).

Export products that recorded a positive growth in August included electronic goods, rice, oil meals, tea, coffee and chemicals.

PTI has contributed to the story.