Indian Needs $800 Million per Trade Deficit

Bangalore: India’s trade deficit has decreased this year by $13.4 billion and exports rose by 3.2 percent but imports was more than exports at 3.8 percent, which was $37.9 billion as compared to imports of $24.5 billion. There was a trade deficit of $185 billion in March which was 10 percent of the GDP.

Imports of oil and petroleum products has accounted to $150 billion and that of gold and silver accounted to $60 billion which altogether comes up to 40 percent of the total imports.

If there is a loss in overall external trade earnings then it could be overcome by the capital inflow which consists of the net foreign exchange remittances, payments and cash transfers. But at the moment even that wouldn’t help much.

Even foreign investors no longer want to put in money in Indian economy because of the low growth prospects, lack of economic reforms, government’s high fiscal deficit, regulatory uncertainty and also controversial tax proposals.