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According to data released by the commerce and Industry ministry, India’s trade deficit has widened to a five month high in April 2019 due to higher crude oil imports.
India’s export growth has also slowed down to a four month low in April,2019 at 0.64% due to slowdown in labour-intensive sectors such as leather products, gems and jewellery, and engineering goods.
Experts have said that global trade scenario could worsen further on the back of rising trade tensions between the US and China putting more pressure on Indian exports in the months to come.
Further,the International monetary fund(IMF) had also cut its global growth forecast for 2019 to 3.3%,the lowest since the 2008 financial crisis.It blamed the (a)trade tensions between the US and China (b)loss of momentum in Europe and (c)uncertainty surrounding Brexit for slowdown.
Earlier,the World Trade Organization (WTO) had also projected trade growth to slow down from 3.9% in 2018 to 3.7% in 2019.It had said that these estimates could be revised downward if trade conditions continue to deteriorate.
A trade deficit is an economic measure of international trade in which a country’s imports exceed its exports.A trade deficit represents an outflow of domestic currency to foreign markets.
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