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Trade deficit rises to record $26.1 billion in June as imports surge, up 172% YoY

The massive rise comes as a result of refined petroleum imports almost doubling to $21 billion in June, while coal imports shot up by 260 percent.

July 14, 2022 / 06:47 PM IST
Representational Image.

Representational Image.

India's merchandise trade deficit rose to a record $26.1 billion in June 2022, 172 percent higher than June 2021 as a continuing global commodity supercycle kept the prices of key energy and metal imports high. The latest figures are higher than the government's initial estimates of $25.6 billion..

Data released by the Commerce and Industry Ministry on July 14 showed that while exports in June rose by 23.5 percent to $40.13 billion, imports shot up by 57.5 percent to $66.31 billion. The resultant $26.1 billion worth of trade deficit - the difference between total exports and imports - is expected to become a new headache for the Commerce Department.

The monthly trade deficit has been rising for the past few months. It had risen from $20.4 billion in April to $23.3 billion in May earlier.

Moneycontrol has reported that the issue has again caught the attention of the Prime Minister’s Office and efforts are on to quickly address it. With the Indian rupee depreciating against the US dollar and commodity prices remaining high, the government expects the trade deficit to widen in the near term, officials said.