According to data released by the Ministry of Commerce,India’s trade deficit has widened to a six-month high of $15.4 billion in May,2019.
The trade deficit has widened due to import growth outpacing export growth following a 37% jump in gold imports.
The rising crude oil prices due to sanctions on Iranian oil imports could further increase imports and put pressure on India’s current account deficit.
Further,India’s exports also grew by 3.93% following a growth in many key sectors such as engineering goods, iron ore and leather products.
However,escalating trade war between the US and China and rising protectionism have cast a shadow on India’s prospects for higher exports.
A trade deficit is an economic measure of international trade in which a country’s imports exceed its exports.A trade deficit represents an outflow of domestic currency to foreign markets.
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