India's trade deficit widened to $15.5 billion in July 2012. This is significantly higher than $10.3 billion reported in June 2012. The trade deficit occurs when a country imports more goods and services than exports.
India's July exports fell 14 per cent to $ 22.4bn while imports fell only 7.6 per cent at $ 37.9bn.
After recording strong growth for much of last year, India's overseas sales have tanked, with officials blaming weak demand in the United States and Europe for the fall. A senior government official pointed out that it would be a stiff challenge to meet the $ 350bn export target.
This is bad news for the rupee as it fell 0.6 per cent 55.68 to the US dollar.
Exports between April and June fell 1.7 percent, totaling $75.2 billion. Oil imports for June fell 4.4 percent to $12.7 billion.
Weak exports and widening trade and current account deficits have added to India's economic gloom, as growth hasslowed to its worst pace in nine years.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
