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India’s July trade gap at $15.5 bn, exports dip 14% to $ 22.4 bn

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 Habil Khorakiwala, chairman of Wockhardt
Habil Khorakiwala, chairman of Wockhardt

India’s trade deficit widened to $15.5 billion in July 2012. This is significantly higher than $10.3 billion reported in June 2012. The trade deficit occurs when a country imports more goods and services than exports.

India’s July exports fell 14 per cent to $ 22.4bn while imports fell only 7.6 per cent at $ 37.9bn.

After recording strong growth for much of last year, India's overseas sales have tanked, with officials blaming weak demand in the United States and Europe for the fall. A senior government official pointed out that it would be a stiff challenge to meet the $ 350bn export target.

This is bad news for the rupee as it fell 0.6 per cent 55.68 to the US dollar.

Exports between April and June fell 1.7 percent, totaling $75.2 billion. Oil imports for June fell 4.4 percent to $12.7 billion.

Weak exports and widening trade and current account deficits have added to India's economic gloom, as growth hasslowed to its worst pace in nine years.