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Trade deficit at all-time high of $23 bn in Sept on festive season imports

Export growth halves to 23%, imports soar by 85%; repercussions likely on current account balance which is set to hit a deficit in Q2 against surplus in first quarter of current fiscal

Indivjal Dhasmana New Delhi
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The trade deficit jumped to a record high of $22.59 billion in September against $13.3 billion in the previous month due to huge imports of goods ahead of the festival season and the hardening of commodity prices.
 
This may have an impact on the current account balance, which is set to give way to a deficit at least in the second quarter against a surplus in the first quarter this fiscal year.
 
The trade deficit rose because merchandise exports growth moderated to 22.6 per cent in September against 45.6 per cent in August and goods imports expanded by 84.8 per cent against 51.7 per cent over this period last year.
 
Aditi Nayar, chief economist at ICRA, said: “The sharp rise in the merchandise trade deficit in September reflects an element of inventory stocking ahead of the festive season as well as advancement of crude oil purchases in the light of the looming hardening of prices.” Exports stood at $3
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India's Sept trade deficit widens to record $22.6 bn

First Published: Oct 14 2021 | 7:47 PM IST

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