India’s June trade deficit highest in 5 years, and this is the biggest reason

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Updated: July 13, 2018 8:20:57 PM

India's trade deficit widened to its highest in more than five years in June, the trade ministry said on Friday, driven largely by a surge in oil imports.

India's June trade deficit highest in 5 years, and this is the biggest reasonIndia’s trade deficit widened to its highest in more than five years in June. (Image: Reuters)

India’s trade deficit widened to its highest in more than five years in June, the trade ministry said on Friday, driven largely by a surge in oil imports. Though merchandise exports rose 17.57 percent year-on-year in June, the trade deficit widened to $16.6 billion due to a rise in oil imports that surged 56.61 percent to $12.73 billion. In May the trade deficit stood at $14.62 billion.

Merchandise exports last month rose to $27.7 billion from a year ago, while imports rose 21.31 percent on year to $44.3 billion, the Ministry of Commerce and Industry said in a statement. India’s gold imports fell 2.8 percent year-on-year to $2.39 billion in June from a year ago, the statement said.

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