Goods trade deficit in December, 2017 widened to $14.9 billion from $10.5 billion in December 2016 as imports outpaced exports, government data showed.
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Gold imports in December, 2017 surged 71.52% to $3.39 billion. Imports of petroleum products rose 34.94% to $10.3 billion and those of pearls, precious and semi-precious stones by 94% to $3.46 billion
Global Brent (oil) prices (U.S. dollar/barrel) increased by 18.75% in December 2017 vis-a-vis December 2016 as per World Bank commodity price data
According to the Federation of Indian Export Organisations (FIEO), the rising trade deficit is alarming and the import profile needs to be analysed carefully to see whether imports would augment domestic production or shall pose a challenge for the same.
Imports during April-December 2017-18 increased by 21.76% to $338.36 billion while trade deficit during the period widened to $115 billion from $78.4 billion in the corresponding period of the previous financial year.
The Indian rupee and bond prices fell after the country’s trade deficit widened to a three-year high on higher oil and gold imports.
Meanwhile, exports for the month rose by only 12.36% to $27 billion. positive growth (in exports) for second month in a row, after a fall in October 2017, shows resilience of the Indian exporters.
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