India’s trade deficit posted its first sequential moderation in five months, coming in at USD 28.7 bn in Aug-22, down from its record high level of USD 30.0 bn in Jul-22
Download ReportAug-22 Merchandise Trade - Quantum of solace
India’s merchandise trade deficit posted its first sequential moderation in five months, coming in at USD 28.7 bn in Aug-22, down from its record high level of USD 30.0 bn in Jul-22. The sequential moderation in trade deficit in Aug-22 is predominantly on account of easing of petroleum deficit even as core trade deficit scaled a new high. PMI export orders in key exporting nations are showing a contraction amidst accelerated tightening in monetary policy, COVID resurgence in few countries, and heightened geopolitical uncertainty. Meanwhile, core imports continue to maintain robust growth, supported by post COVID pickup in economic activity, ongoing progress in, and government’s focus on capex spending. We maintain our FY23 current account deficit forecast of USD 130 bn.