India Trade


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.

FocusEconomics Consensus Forecast panelists expect exports to increase 4.9% in FY 2015/2016, reaching USD 326 billion. In FY 2016/2017, the panel sees exports expanding 10.0% to USD 358 billion.

Author: Angela Bouzanis, Senior Economist

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India Trade Chart

India Trade12m June 2015

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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