Global crude prices have started ballooning again, contributing significantly to widening of the trade deficit. In fact, the deficit expanded to a record high of $22.59 billion in September. Petroleum imports soared to $17.4 billion in September against $11.6 billion in the previous month.
The reasons for such a spike in petroleum imports is the hardening of international prices and increase in demand in the domestic markets, as Covid-induced lockdowns began easing. The global price for the Indian basket of oil was $73.13 a barrel this September, against $41.35 a year ago.
Gold imports have also been impacting the deficit in the recent past, even as inbound shipments declined to $5.1 billion in September from $6.7 billion in the previous