India’s Trade Deficit widened to $11.8 billion, which is the highest of the last four months (since November). Total imports fell 13% but exports fell over 20% in USD terms. And the big help was oil imports which have fallen over 50% as a result of the price drop in crude oil, our largest import. However, non oil imports seem to have gone up by about 11%. This is not a bad thing, as India’s economy relies largely on imports, and an increase in import growth indicates that there is consumption demand within India. However, most of that demand could just be Gold. Apparently, the change in regulation has made Indian gold imports double to 125 tonnes. Total Trade Growth Falls Off Cliff Adding up Imports + Exports, our total trade too has fallen tremendously. Trade growth, year on year, is at the lowest in over five years at -16%.… (Read On…)
[via Capital Mind]
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