Due to the rise in prices of crude oil from the last few months, it led India to rise up their trade deficit. India has recorded the highest trade deficit from previous 61 months. Apart from this, the growth in engineering and pharmaceutical sector helps India to boost exports. With the help of the industry as mentioned above, India exports reach up to 17.57%.

 

In the analysis of imports and exports, the reports suggest that the overall imports are recorded high as compared to the previous 5 months. Import rate was recorded at 21.31% in the month of June which is only marked as 14.85%. In terms of currency, India imports were $44.3 billion in the month of June. Imports for the month of May is stood at $43.48 billion.

The rise in the imports of India puts pressure on the current account deficit. The increase in imports is uncomfortably high in the month of June. Out of the total increase in the imports 57% is recorded as crude oil imports.

In June the import was highly recorded in non-oil non-gold merchandise. Another focusing sector in which imports was highly recorded is machinery, chemicals, coal, fertilizers, electronic goods and many more.

 

Experts are examining the cost of the crude oil to be a rise in coming months. They also predict that the bills of the Indian oil will rise in the near future due to the external pressure imposed on them. The leading cause behind the hike in prices of crude oil is lack of production of crude oil by the producers.

The current trade deficit of the nation is stood at $16-17 billion. Regarding gross domestic product, it was about 2.5% in quarter one of FY2019. Which is stood at $14 billion in quarter one of FY2018?
Apart from this India took advantage of rising crude oil globally. Due to the rise in the prices of crude oil processed petroleum exports of India increased to 52.53%. Concerning currency, it added $4.06 billion.

 

Overall if we talk about the exports of the country, the export was stood at $27.7 billion in the months of June. Significant sectors of the commodities for India is gems and jewelry, engineering goods, readymade garments and some other.