India’s trade deficit widens to $30.21 billion as focus turns to trade deals

According to a report by Reuters, India’s merchandise trade deficit expanded to $30.21 billion in September from $26.86 billion in August since imports exceeded exports, leading to renewed attention being paid to trade agreements in order to increase exports and reduce the deficit.

According to government data, imports of goods reached $74.61 billion in September from $70.67 billion the month before, whereas exports rose only slightly to $44.40 billion from $43.81 billion.

Although the deficit widened from month to month, it decreased from $33 billion in September of last year because exports increased more rapidly than imports on an annual basis.

According to Trade Secretary Rajesh Agrawal, the growth in exports was widespread and saw increases in the cases of petroleum products, electronics, engineering goods, handicrafts and agricultural products.

India is trying to spread its exports by means of trade agreements; it already has an agreement with Britain and one with New Zealand which is about to come into force. Talks with the United States are still going on and the more extensive agreement with the European Union is moving towards being put into effect.

According to Reuters, Agrawal stated that talks with Washington were progressing in the “right direction” and that India hoped to conclude and sign the agreement as soon as possible.

In April through September the United States was still India’s biggest destination for exports, the value of the goods shipped amounting to $50.81 billion, an increase on the corresponding period the previous year.