The highest merchandise trade deficit print in four months
FinTech BizNews Service across
Mumbai, May 15, 2024: Aditi Nayar, Chief Economist, Head Research and Outreach, ICRA, has shared her views on Trade data:
India’s merchandise trade deficit widened sharply to $19.1 billion in April 2024 from $14.4 billion in the year ago-month, amid an increase in the oil as well as the non-oil deficit. This was the highest merchandise trade deficit print in four months and was also much higher than ICRA’s expectations. Notably, the widening in the non-oil deficit in April 2024 vis-à-vis April 2023 was entirely driven by a tripling in gold imports, partly aided by the surge in gold prices.
Overall, nearly half of the widening in the aggregate merchandise trade deficit between April 2023 and April 2024 was on account of the surge in the value of gold imports amid the rise in global prices.
Merchandise exports eked out a very mild growth and trailed our forecast for April 2024. As of now, the current account deficit for FY2025 appears likely to print at a modest 1.2% of GDP."