InvestorQ : What is the latest on the trade deficit for August 2022?
Dia Deshpande made post

What is the latest on the trade deficit for August 2022?

Tisha Malhotra answered.
3 weeks ago

India's merchandise trade deficit for August 2022 at under $28 billion is lower than the $30 billion reported in July 2022. In absolute terms, that is still too high and threatens to take CAD to 4% to 5% of GDP. In August 2022, merchandise exports grew just 1.62% to $33.92 billion due to supply chain factors. For first 5 months of FY23, exports were up 17.68% to $193.51 billion but merchandise imports grew 45.74% to $318 billion. As a result, the trade deficit for the first 5 months stands at $124.52 billion with potential annualized at $300 bn.

Crude oil imports spiked 87.44% yoy to $17.7 billion, although gold imports dipped 47% to $3.57 billion. Major items that contributed to the import spike were coal, coke and briquettes (up 133.64%), chemicals (up 43%) and vegetable oil (up 41.55%). On the exports front, there was negative growth in engineering goods, gems & jewellery, ready-made garments of all textiles and plastics. The zero tolerance approach adopted by China to COVID cases is also hurting supply chains and creating a shortage of containers. It is big.