Falling Rupee: RBI cries, Government smiles
Mecklai graph of the day - India registered a fall in its trade deficit in the month of June 2012; it was noted at $10.3 billion against its previous reading of $ 13.26 billion thanks to imports which fell down by 13.46% while exports witness a fall of 5.45 %.
July 18, 2012 / 18:21 IST
Mecklai graph of the day - Falling Rupee: RBI cries, Government smiles
India registered a fall in its trade deficit in the month of June 2012; it was noted at $10.3 billion against its previous reading of $ 13.26 billion thanks to imports which fell down by 13.46% while exports witness a fall of 5.45 %. Oil imports, which accounts for the lion’s share in the pie, have fallen to $12.6 bn from $15 bn in the month of May- an 18% decline contributed a sharp fall in Imports. Gold and silver imports too reduced to $1.9 billion from $4.3 billion on month on month basis.Since the rupee has remained range bound (55-57), the revenue earned from the exports is also significant. This coupled with declining imports has reduced the trade deficit for the first quarter. In the midst of global slowdown, Current Account Deficit (CAD), as always, is likely to remain a problem for India. The government has taken some bold step to control CAD & would be taking a sigh of relief as trade deficit has narrowed down. Falling rupee might have left RBI crying but it has indeed given a reason for government to cheer.The below Graph depicts India’s Quarterly Trade Deficit for the respective period.
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