India: Trade deficit narrows in April
May 16, 2016
Recently released data related to India’s external sector showed that the trade deficit totaled USD 4.8 billion in April, which was a notably smaller shortfall over the USD 11.0 billion deficit observed in the same month last year. In addition, the result marked the smallest gap since March 2011. For the 12 months up to April, the trade deficit recorded USD 112.3 billion, which was an improvement from the 118.5 billion shortfall tallied in the 12 months up to March.
The narrowing in the trade deficit stemmed from imports contracting a notable 23.1% annually in April, which followed March’s 21.6% plunge. The low-oil-price environment has caused the value of India’s imports to drop notably. Accordingly, oil imports totaled USD 5.7 billion in April, which represented a 24.0% decrease compared to the same month last year.
Meanwhile, exports fell 6.7% in April, which was a more pronounced decline than March’s 5.5% contraction.