India’s Trade Trouble: Deficit Increases 175% On High Oil Prices

by GoNews Desk Dec 06, 2021 • 01:33 PM Views 3160

 High prices of crude oil imports are wiping out the gains of increasing exports for India. Government is confident that a record exports of more than $400b this year will indicate that the economy is picking up pace, but numbers released for the first two quarters tell another story.

That of a record trade deficit. India's trade deficit was USD 19.7 billion in October, compared to a preliminary estimate of USD 19.9 billion. According to the data released by Ministry of Commerce imports jumped 62.5 percent year-on-year to USD 55.4 billion mostly due to increase in purchases of crude oil (140.5%). Meanwhile, exports surged – as many government spokespersons have proudly pointed out - at a softer 43% to USD 35.7 billion.

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UPDATE | November's Trade Deficit Sets New High. Read Here