According to Trade Data released by Commerce and Industry Ministry, trade deficit now stood at USD 76.54 billion.
Trade deficit is an economic measure of a negative balance of trade in which a country’s imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.
India’s exports continued to grow and expanded by 5.72 per cent to USD 23.9 billion compared to USD 22.6 billion in the same month of previous year.
Imports too rose by 0.46 per cent to USD 34.25 billion during the month under review, leaving a trade deficit of USD 10.36 billion.
Oil imports were valued at USD 7.645 billion during December 2016 which was 14.61 per cent higher than oil imports valued at USD 6.670 billion in December 2015.
Non-oil imports were estimated at USD 26.608 billion in December, down by 2.98 per cent than that of USD 27.425 billion in December, 2015.
During April-December period, exports grew marginally by 0.75 per cent USD 198.8 billion. However, imports dipped 7.42 per cent to USD 275.3 billion.
According to the Ministry of Commerce and Industry, the fifteen largest trading partners of India represent 59.37% of total trade by India in the financial year 2015-2016. These figures include trade in goods and commodities, but do not include services or foreign direct investment.
Economic theory dictates that a trade deficit is not necessarily a bad situation because it often corrects itself over time.
