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.