In August, the country’s imports reached a record level.
In the month of August, the country’s imports reached a record high and the country’s trade deficit increased tremendously. However, another reason for the increase in trade deficit is the decline in exports. In which a fall of more than 9 percent has been seen. There was not much fall in exports in the month of July. This figure was less than 2 percent. But from the point of view of the country’s economy, the decline in exports is considered to be an important factor. If there is an increase in competing imports, then the country’s economy suffers losses due to the increase in trade deficit. Let us also tell you what kind of figures were seen in exports and imports in the month of August?
Exporting at a record level
According to data from the Ministry of Commerce, India’s trade deficit in August widened to $29.65 billion on an annual basis, up from $24.2 billion in the same month last year. The trade deficit in July was $23.5 billion. According to government data, India’s exports declined to $34.71 billion in August from $38.28 billion a year ago, while imports hit a record $64.36 billion, which was $62.30 billion in the previous corresponding period. According to a Reuters poll, economists had expected the country’s trade deficit to be $23 billion in August.
What was your situation last month?
In August, service exports amounted to $30.69 billion, while service imports were $15.7 billion, compared with $28.71 billion and $15.09 billion respectively a year ago. If we talk about July figures, before this, the country’s exports had declined by 1.4 percent year-on-year to $33.98 billion, while imports had risen by 7.5 percent and increased to $57.48 billion. This means that for the second consecutive month, the country’s exports are declining and imports are increasing.
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What do officials say?
Referring to rising shipping costs and slowdown in China, Commerce Secretary Sunil Barthwal said exports are facing a huge challenge in the current global circumstances. Due to which a decline in numbers is being seen. Commerce Minister Piyush Goyal recently expressed confidence that India’s exports of goods and services will cross $800 billion this financial year despite global challenges.
