Trade deficit hits fresh high in June on coal, gold, oil imports

The trade deficit majorly burgeoned on account of high coal imports, which witnessed a growth of 242%, followed by gold and petroleum at 169% and 94.2%, respectively.

Published: 05th July 2022 08:22 AM  |   Last Updated: 05th July 2022 08:22 AM   |  A+A-

Image used for representational purpose only. (File photo)

Image used for representational purpose only. (File photo)

Express News Service

NEW DELHI: India’s trade deficit hit a fresh high in June at $25.63 billion, surpassing the previous record of $24.5 billion in May, according to the government data released on Monday. While imports increased by 51% year-on-year (YoY) to $63.6 billion, exports grew only by 16.8% to $ 38 billion. 

The trade deficit majorly burgeoned on account of high coal imports, which witnessed a growth of 242%, followed by gold and petroleum at 169% and 94.2%, respectively. Meanwhile, the April-June quarter recorded 22% growth in exports and 47.31% in imports on a YoY basis.

Besides this, the value of non-petroleum imports was at $42.84 billion in June 2022 with a positive growth of 36.36% over $ `31.42 billion in June 2021. Also, non-oil and non-gold, silver and precious metals imports also grew YoY by 31.71% to $36.7 billion.

Commenting on the record-high trade deficit, Aditi Nayar, chief economist at ICRA, said, “Despite an expected fall in the gold imports, the merchandise trade deficit widened further to a worrying $25.6 billion in June 2022, with a sequential dip in exports and a rise in the non-gold imports relative to May 2022.”

“With a steady uptick in the size of the merchandise trade deficit in the quarter, we expect current account deficit to more than double to $30 billion in Q1 FY2023, from the modest $13 billion in the previous quarter.”



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp