India’s September Trade Deficit Widens to Record $22.6 Billion
According to government data released on Thursday, India’s merchandise trade imbalance stretched to a record $22.6 billion in September, the largest in at least 14 years, as crude oil and gold imports soared.
The Reserve Bank of India is unlikely to be troubled by the rising trade deficit because the trade surplus in services and entry of foreign capital into the stock and debt markets have offered a cushion. At the end of September, India’s foreign exchange reserves had surpassed $637 billion.
According to figures issued previously by the country’s central bank, the current account surplus in the April-June quarter was $6.5 billion.
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