Merchandise trade deficit for July at $31 billion

Chennai: India's merchandise trade deficit, excess of imports over exports, touched $31.02 billion in July up from $26.18 billion in June 2022.

According to BVR Subrahmanyam, Secretary, Department of Commerce, merchandise imports in July were at about $66.26 billion, whereas exports were at about $35.24 billion resulting in a deficit of $31.02 billion.

High commodity prices, depreciating rupee against the dollar are said to be causes for the merchandise trade deficit.

In June this year, India's merchandise exports were at $40.13 billion and imports were at $66.31 ending in a deficit figure of $26.18 billion.

Within the overall figures, sectors like chemicals, electronic goods logged export growth, while engineering, gems and jewellery, petroleum products, pharmaceuticals and others contracted.

Subrahmanyam said restrictions on exports of wheat, iron, steel held back exports revenue. Shipments to Russia and Sri Lanka are expected to boost revenue with the Reserve Bank of India (RBI) permitting settlement of trades in rupee.