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Thursday, July 14, 2022

Trade deficit surges to $26.1 billion in June as imports rise :-Mint :July 14 2022

 

For the past couple of months, India's monthly trade deficit has been rising. It rose from $20.4 billion in April to $23.3 billion in May earlier.

India's merchandise trade deficit rose to $26.1 billion in June 2022, in comparison to $9.6 billion in June 2021, the Ministry of Commerce & Industry said on 14 July.

The data further says merchandise trade deficit was 172 percent higher than June 2021 as rise in global commodity including the prices of key energy and metal imports breached records.

According to the data, released by the government, India's exports in June rose by 23.5 percent to $40.13 billion, imports shot up by 57.5 percent to $66.31 billion. Thereby a resultant $26.1 billion worth of trade deficit, which may become a new headache for the Commerce Department.

For the past couple of months, India's monthly trade deficit has been rising. It rose from $20.4 billion in April to $23.3 billion in May earlier.

However, data in the services sector was not that bad. India's exports in June rose by 22 percent to $24.77 billion, imports shot up by 48.6 percent to $16.11 billion. With this, a resultant $8.41 billion worth of trade deficit in services was seen. 

Considering the overall trade – merchandise and services, India's exports in June rose by 22.95 percent to $64.91 billion, imports shot up by 55.7 percent to $82.41 billion.

The government through its data said that the import of coal, coke and briquettes surged by an annual growth of 260 per cent to come to a staggering $6.47 billion in June, as compared to $1.8 billion a year back in June 2021.

Electronic goods remained the third-largest import category in June with an annual hike of 26.8 per cent to $6.1 billion, up from $4.6 billion in June 2021. Gold saw imports rise by a huge 182 per cent to $2.7 billion in June, up from $969 million in the same month of the previous year. Silver registered that maximum increase in imports as annual hike was 6540.7 per cent to $785.5 million in June, up from $11.83 million in June 2021.

Meanwhile, exports of commodities like iron ore, handicrafts, plastics, cotton yarn/handloom, carpet and cashew exhibited negative growth in June 2022.

India's imports rose by 62 per cent in May and 26.6 per cent in April in current FY23. Looking at a broader aspect, India's trade deficit shot up to $190.7 billion in FY22 from $102.6 billion in FY21 and $161.3 billion in FY20, before the pandemic.

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