India’s merchandise trade deficit widened marginally to USD 23.8 bn in Dec-22 from USD 23.4 bn in Nov-22.
Download ReportDec-22 Merchandise Trade - Range bound
India’s merchandise trade deficit widened marginally to USD 23.8 bn in Dec-22 from USD 23.4 bn in Nov-22. This was predominantly on account of the sequential moderation in oil exports, while imports held their ground. Going forward, external demand is expected to be subdued on account of rapid tightening of global financial conditions and persistently elevated geopolitical uncertainty. While imports appear relatively stronger, it could soften on the back of expected moderation in domestic growth. China’s easing of COVID restrictions could provide support to near term trade momentum. On net basis, we maintain our current account deficit forecast at 3.1% of GDP in FY23 and 2.5% of GDP in FY24.