India Trade


India: Trade deficit widens in August

September 17, 2015

Recently released data related to India’s external sector showed that the trade deficit totaled USD 12.5 billion in August, which was a deterioration over the USD 10.7 billion shortfall observed in the same month last year. For the 12 months up to August, the trade deficit recorded USD 138.3 billion, which was a larger shortfall than the 136.5 billion deficit tallied in the 12 months up to July.

The widening in the trade deficit showed that imports contracted 10.0% annually in August, which notably contrasted the 1.2% expansion registered in August of last year. The contraction was largely the result of the low oil-price environment. Accordingly, oil imports totaled USD 7.5 billion, which represented a 42.6% decrease compared to the same month of the previous year.

Meanwhile, exports contracted 20.7% year-on-year in August, which notably contrasted the 1.8% rise tallied in August 2014 and marked the largest fall in five months.

FocusEconomics Consensus Forecast panelists expect exports to contract 0.6% in FY 2015/2016, reaching USD 307 billion. In FY 2016/2017, the panel sees exports expanding 7.4% to USD 329 billion.

Author: Angela Bouzanis, Senior Economist

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India Trade Chart

India Trade12m August 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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