India: Trade deficit narrows in June
July 17, 2015
More recent data related to India’s external sector showed that the trade deficit totaled USD 10.8 billion in June, which was an improvement over the USD 11.8 billion shortfall observed in the same month last year. For the 12 months up to June, the trade deficit recorded USD 136.0 billion, which was slightly less than the 137.0 billion shortfall tallied in the 12 months up to May and marked an eight-month high.
The narrowing in the trade deficit showed that imports contracted 13.4% annually in June, which significantly contrasted the 8.3% rise registered in June of last year. The contraction was largely the result of the sharp decline in oil prices. Accordingly, oil imports totaled USD 8.7 billion, which represented a 35.0% decrease compared to the same month of the previous year.
Meanwhile, exports contracted 15.8% year-on-year in June, which significantly contrasted the 10.2% expansion recorded in June 2014.