Trade deficit widens to $192 billion in FY22; imports at record high

Value of inbound petroleum shipments nearly doubles; account for 26% of total imports

India’s trade deficit widened to $192 billion in financial year 2021-22 (FY22) as imports hit a record high of $610 billion because the value of inbound petroleum shipments nearly doubled as compared to a year earlier.

The sharp 94.33 per cent jump in petroleum imports’ value was because of the rise in global crude oil prices as a result of the Russian invasion of Ukraine. The Share of petroleum imports out of India’s total imports was 26 per cent in FY22, preliminary data released by the commerce and industry ministry showed.

Apart from petroleum products, imports of electronic goods and gold grew