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India's Trade Deficit Triples to Record $31 Billion in July

beijingwalker

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India's Trade Deficit Triples to Record $31 Billion in July​

AUGUST 03, 2022, 14:25 IST
New Delhi, India

New Delhi, Aug 2: Exports dipped, though marginally, for the first time in 17 months in July, while trade deficit tripled to a record USD 31 billion fuelled by over 70 per cent rise in crude oil imports. The July 2022 exports at USD 35.24 billion showed a decline of by 0.76 per cent on annual basis. The country’s merchandise exports stood at USD 35.51 billion in July 2021.

The previous decline in exports was recorded in February 2021 when the shipments had dipped by 0.4 per cent. As per the preliminary data released by the commerce ministry, India’s merchandise import in July 2022 was USD 66.26 billion, up 43.59 per cent over USD 46.15 billion in the year-ago month.

However, the exports in April-July 2022-23 stood at USD 156.41 billion, an increase of 19.35 per cent over USD 131.06 billion in the corresponding period last fiscal. India’s merchandise imports in April-July 2022-23 was USD 256.43 billion, up 48.12 per cent year-on-year.

Imports of crude and petroleum products during July this year was USD 21.13 billion, up 70.4 per cent compared to USD 12.4 billion in July 2021. Imports of coal, coke and briquettes were up 164.43 per cent while that of vegetable oil rose 47.18 per cent.

Inbound shipments of gold, however, declined by 43.6 per cent to USD 2.37 billion compared to 4.2 billion in July 2021. Higher imports compared to exports widened the trade deficit to USD 31.02 billion in July this year. It has almost tripled from USD 10.63 billion in the same month of the previous fiscal.

The deficit has increased to USD 100.01 billion during April-July 2022-23. Exports of engineering goods; petroleum products; gems and jewellery; and drugs and pharmaceuticals, contracted in July 2022 year-on-year.

On the other hand, outward shipments of engineering goods posted a healthy growth on annual basis. “Exports of USD 156.41 billion in first four months of the fiscal puts us on track to achieve USD 470 billion in the current fiscal comfortably," commerce secretary B V R Subrahmanyam said while talking to reporters about the trade data.

“We are not living in normal times. The easy times where we could exploit more global trends last year… are changing. The external world is no longer benign. So we have to work harder," Subrahmanyam said, adding, “The exports in July 2022 are almost static compared to July 2021." Referring to the exports figures for the first four months of the fiscal till July, the secretary said based on calculations “we will actually be comfortably above USD 500 billion (merchandise exports overall in FY23)". The commerce ministry said that over USD 35 billion exports in July has been achieved despite measures to control inflation and the continued disruptions of supply chains due to Covid and Russia-Ukraine conflict.

 

MH.Yang

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How much foreign exchange reserves does India still have?
How much foreign debt does India need to repay within 12 months?
 

beijingwalker

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How much foreign exchange reserves does India still have?
How much foreign debt does India need to repay within 12 months?
Put it in perspective.
This is the direct result of India's effort to decouple from China.

"China’s trade surplus rose to a record high of $101.26 billion in July, the first time in history that the indicator has risen above the $100 billion mark."
 

beijingwalker

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微信图片_20220813231333.png
 

Indos

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This is not good at current situation, it will weaken Rupee in the time US Central Bank raises interest rate. Weaker Rupee means more inflation will come from imported goods, together with Indian Central Bank interest hike, this negative combination will push down the Indian potential economic growth

 

HttpError

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This is not good at current situation, it will weaken Rupee in the time US Central Bank raises interest rate. Weaker Rupee means more inflation will come from imported goods, together with Indian Central Bank interest hike, this negative combination will push down the Indian potential economic growth


But as per their logic they are the best when it comes to economics and always lecturing their other neighbours how to be an economic super-power.
 

beijingwalker

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This is not good at current situation, it will weaken Rupee in the time US Central Bank raises interest rate. Weaker Rupee means more inflation will come from imported goods, together with Indian Central Bank interest hike, this negative combination will push down the Indian potential economic growth

And how can India keep buying and not producing? Inflating their GDP number by only spending like US?
 

Indos

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But as per their logic they are the best when it comes to economics and always lecturing their other neighbours how to be an economic super-power.

Correction, the logic of their economists in Central Bank, Finance Minister, Indian citizen economists, and Indian overseas economist, including those in S&P, Word Bank, IMF, Moody, and so on and so on.

Their projection for Q2 2022 economic growth is 11 percent, well Indian Q2 2021 has low base since it was the time India hit by Delta, the growth rate should be higher than Indian Q1 2022 number, but if the number shows only 5.5 % growth, then it will tell that Indian economy growth in 2022 will be most likely about 4 %. I dont understand their thinking saying Indian GDP growth will be about 7-8 percent in 2022 while the fact that their Q4 2021 is just around 5 percent and their Q1 2022 is even going down at 4.1 percent

I would predict Indian economy is dominantly related with their domestic consumption, something similar like Indonesia, their retail sales data will show what their economy growth would be like

The other dominant factor is FDI, this is why Indian economists every where (inside and outside India) always tell India will have the highest growth among major developing economist. Their FDI and also foreign investment in their capital market (hot money) is also crucial to strengthen their currency during this time. They need to sell optimism every where since if foreign investors lost their hope on Indian economy, it can be a disaster
 

SuperStar20

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But as per their logic they are the best when it comes to economics and always lecturing their other neighbours how to be an economic super-power.
Unlike our neighbors, India is self sufficient in most of the basic needs. That is the difference.

India needs to manufacture smart phones, computers and TVs. Then everything will solve.
 

beijingwalker

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beijingwalker

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@GreatHanWarrior @beijingwalker https://kathmandupost.com/money/202...t-a-loss-as-chinese-planes-begin-to-rust?s=08

@Indos @beijingwalker @MH.Yang
India’s overall exports (Merchandise and Services combined) in July 2022* are estimated to be USD 61.18 Billion, exhibiting a positive growth of 11.51 per cent over the same period last year


Imports grow much faster and higher, this is why India's trade deficit is skyrocketing.
 

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