India’s merchandise trade deficit has widened to a four-month high of $19.1 billion in April 2024. This data, reported by Livemint, reflects a growing gap between the value of India’s imports and exports.
The April 2024 figure is a significant increase compared to the $13.4 billion deficit recorded in March 2024. Rising global oil prices are a major factor contributing to this surge. India relies heavily on oil imports, and the recent price hikes have significantly inflated the import bill.
This widening trade gap is a cause for concern for policymakers. The government may look towards measures to boost domestic production and exports in order to narrow the deficit and promote greater trade balance.
Source: Mint