India Trade April 2016


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.

FocusEconomics Consensus Forecast panelists expect exports to grow 1.5% in FY 2016, reaching USD 257 billion. In FY 2017, the panel sees exports expanding 13.2% to USD 291 billion.

Author: Angela Bouzanis, Senior Economist

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India Trade Chart

India Trade12m April 2016

Note: 12-month sum of trade balance in USD billion and annual variation of the 12-sum of exports and imports in %.
Source: Ministry of Commerce and Industry and FocusEconomics calculations.

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