India: Trade deficit widens in April
May 19, 2017
Recently released data related to India’s external sector showed that the trade deficit totaled USD 13.2 billion in April, which was a greater shortfall than the USD 4.8 billion gap recorded in April 2016 (March 2016: USD 10.4 billion deficit).
The deterioration in trade data came on the back of a surge in imports growth. Imports expanded a multi-year high of 49.1% over the same month last year (March: +45.3% year-on-year), and totaled USD 39.9 billion. The increase was due partly to rising prices for oil imports. Meanwhile, exports growth moderated but remained strong, coming in at 19.8% (March: +27.6% yoy). Robust demand was seen from Japan and the U.S. and helped boost India’s shipments abroad to total USD 24.6 billion.
The rolling 12-month trade deficit widened from USD 105 billion in March to USD 114 billion in April.