What are the reasons for the five-year high trade deficit in July

Despite India's huge dependence on oil, it has not been the largest contributor to the trade deficit

In July, India’s trade deficit touched a five-year high of $18.02 billion driven, to a large extent, by a jump in the oil import bill. Subhayan Chakraborty explains the implications.

What are the reasons for the five-year high trade deficit in July?

Monthly trade deficit, the difference between merchandise exports and imports in a particular month, reached $18.02 billion in July. This was the second straight month when the widening trade deficit had remained above the five-year high limit. This was primarily fuelled by a jump in the crude oil import bill, which rose more than 57 per cent to $12.35 billion