Trade Deficit

Why is it in the news?
  • India’s trade deficit expanded to a six-month high of $15.4 billion in May.
  • Import growth outpacing export growth following a 37% jump in gold imports.
More in the news
    • Exports grew 3.93% in May to $30 billion compared with $28.86 billion worth of exports in the same month last year.
    • Possible Causes:
      (1) China’s exports in May inched up 1.1%, while imports fell 8.5%, leading to a significantly higher trade surplus of $41.65 billion than analysts projected.
      (2) The escalating trade war between the US and China, and rising protectionism have cast a shadow on India’s prospects for higher exports.
      • In March, the World Trade Organization (WTO) had projected trade growth to fall from 3.9% in 2018 to 3.7% in 2019.
      • It had cautioned that these estimates could be revised downward if trade conditions continue to deteriorate.
    Source
    LiveMint.




    Posted by Jawwad Kazi on 15th Jun 2019
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