NEW DELHI: India’s merchandise trade deficit widened to USD28.38 billion in April, government data showed on Friday, as the Middle East conflict continued to hinder shipments while disrupting energy imports and making them costlier.
Concerns that the energy shock from the months-long Iran war could slow growth, raise inflation, and hit India’s balance of payments have led to a raft of interventions from policymakers as the rupee plummets to record lows, making it Asia’s worst-performing currency this year. Economists had expected the trade deficit to be USD26.5 billion, according to a Reuters poll, compared with a deficit of USD20.67 billion in March.
India’s merchandise exports rose to USD43.56 billion from USD38.92 billion in March, while imports rose to USD71.94 billion from USD59.59 billion, data showed.
India, the world’s third-largest oil importer and consumer, imports more than 80 percent of its crude oil needs and 60 percent of its cooking gas, with the Middle East accounting for a large chunk of the supply.
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