[NEW DELHI] India’s trade deficit widened in September, the first full month of data since the US imposed its highest tariffs in Asia on Indian goods.
The gap between exports and imports stood at US$32.15 billion last month, data released by the Ministry of Commerce and Industry showed on Wednesday (Oct 15). That compares with a US$27.5 billion gap projected by economists in a Bloomberg survey.
Exports rose 6.7 per cent in September to US$36.38 billion from a year earlier, while imports climbed 16.7 per cent to US$68.53 billion.
The White House imposed crushing 50 per cent tariffs on Indian goods from Aug 27 to penalise New Delhi for its trade barriers and purchases of Russian energy. Indian exporters had front-loaded shipments to the US in July and August to avoid the duties, but the levies now threaten to make labour-intensive exports uncompetitive against rivals such as Vietnam and Bangladesh.
The US is India’s biggest export destination, accounting for almost a fifth of the nation’s total exports.
An Indian trade team is in Washington this week to fast-track negotiations on a deal that would lower tariffs and give businesses greater certainty. BLOOMBERG
