Trade deficit hit all time high of $185 bn
India's trade deficit touched a record high at $184.9 billion for 2011-12 as imports outpaced exports by a huge margin. This higher-than-expected trade deficit is about 10.6 per cent of the GDP and is mainly on account of bloating oil imports.
Exports also fell for the first time since the 2009 global financial crisis in March this year, as demand weakened in the US and Europe. Exports dropped 5.7% YoY to $28.6 billion. Imports rose 24.3% YoY to $42.6 billion in March. Oil imports rose 32.5% YoY to $15.8 billion.
View: Increase in the trade deficit contributed by oil prices and fall in exports will continue to add pressure on domestic currency. Further rising deficit will also add pressure on the inflation side and weaken the macro environment.
....more info
India's trade deficit touched a record high at $184.9 billion for 2011-12 as imports outpaced exports by a huge margin. This higher-than-expected trade deficit is about 10.6 per cent of the GDP and is mainly on account of bloating oil imports.
Exports also fell for the first time since the 2009 global financial crisis in March this year, as demand weakened in the US and Europe. Exports dropped 5.7% YoY to $28.6 billion. Imports rose 24.3% YoY to $42.6 billion in March. Oil imports rose 32.5% YoY to $15.8 billion.
View: Increase in the trade deficit contributed by oil prices and fall in exports will continue to add pressure on domestic currency. Further rising deficit will also add pressure on the inflation side and weaken the macro environment.
....more info