India: Trade deficit widens in October
November 16, 2016
Recently-released data related to India’s external sector showed that the trade deficit totaled USD 10.2 billion in October, which was a larger shortfall than the USD 9.7 billion gap recorded in October 2015 (September 2016: USD 8.3 billion deficit). The rolling 12-month trade deficit widened from USD 93.4 billion in September to USD 93.9 billion in October.
The deterioration in trade data came on the back of a rebound in imports, which more than offset faster exports growth. Imports totaled USD 33.7 billion in October, which represented a 8.1% increase from the same month last year (September 2016: -2.5% year-on-year; October 2015: -21.1% yoy) and marked the highest result since December 2015.
Meanwhile, exports growth picked up steam, rising from September’s 4.6% over the same month last year to 9.6% (October 2015: -17.1% yoy). India’s shipments abroad totaled USD 23.5 billion, which represented the largest amount since March 2015.