InvestorQ : Why has the trade deficit widened in the month of June 2021?
Rutuja Nigam made post

Why has the trade deficit widened in the month of June 2021?

Answer
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5 months ago
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The merchandise exports data remained steady for Jun-21. However, an 8.6% sequential spike in merchandise imports led to the widening of the trade deficit to $9.7 billion. The trade deficit was just about $6.28 billion in the month of May 2021. While exports stood at $32.5 billion, merchandise imports for Jun-21 had risen by nearly 8.6% to $41.87 billion.

If you consider for the full first quarter ended Jun-21, cumulative trade deficit was t $30.75 billion. On a yoy basis, the oil imports were up 117% at $10.68 billion on the back of higher volumes as well as elevated crude prices. Even the overall deficit for the first quarter ended June 2021, including services trade, also widened by $2.33 billion.

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