India’s merchandise trade deficit widened to USD 26.9 bn in Oct-22 from USD 25.7 bn in Sep-22
Download Report
Nov 16, 2022
Oct-22 Merchandise Trade - Domestic idiosyncrasies and global undercurrents
India’s merchandise trade deficit widened to USD 26.9 bn in Oct-22 from USD 25.7 bn in Sep-22. The sequential increase in trade deficit is predominantly on account of higher petroleum deficit even as core trade deficit posted a moderation. Rapid tightening of global financial conditions and heightened geopolitical uncertainty is weighing on India’s exports. Meanwhile, core imports continue to remain relatively healthy, supported by post COVID pickup in economic activity, pent-up/festive demand, and government’s focus on capex spending. We maintain our FY23 current account deficit forecast of USD 130 bn, albeit with some downside risk.