India's biggest trade deficit in more than five years adds to rupee's woes

While a weaker rupee is positive for exports, it poses an inflation risk for a nation that imports more than 80 per cent of its crude-oil needs

India’s trade deficit in July widened to the most in more than five years, worsening the outlook for the rupee that hit a record low on Tuesday.

The gap between exports and imports reached $18 billion in July, fanned by a higher oil import bill, according to data released by India’s commerce ministry on Tuesday. That compared with the $15.7 billion median estimate in a Bloomberg survey of 24 economists and $16.6 billion in June.

The trade shortfall puts pressure on the current-account deficit, a key vulnerability for the economy and one of the reasons why the rupee has been among the