India: Trade deficit widens in June
July 14, 2017
Recently released data related to India’s external sector showed that the trade deficit totaled USD 12.9 billion in June, which was a greater shortfall than the USD 8.1 billion gap recorded in June 2016 (May 2016: USD 13.9 billion deficit).
The deterioration in trade data came on the back of robust growth in imports. Imports expanded 18.9% over the same month last year (May: +33.5% year-on-year), and totaled USD 36.5 billion. The increase was due largely to higher prices for commodities. Meanwhile, exports growth moderated, coming in at 4.4% (May: +8.3% yoy) and totaling USD 23.6 billion.
The rolling 12-month trade deficit widened from USD 122 billion in May to USD 127 billion in June.