Kamal Ghorui
India’s merchandise trade deficit widened sharply to $28.38 billion in April as imports rose 10 per cent year-on-year despite a steep decline in inbound shipments from Middle East amid continuing geopolitical disruptions.Government data released on Friday showed India’s imports increased to $71.94 billion in April from $65.38 billion in the year-ago period, while exports stood at $43.56 billion.The trade deficit widened significantly from $20.67 billion in March and came in higher than market expectations as elevated crude oil prices and global supply disruptions continued to increase import costs.Commerce Secretary Sunil Barthwal said imports from Middle East declined 31.64 per cent to $10.47 billion in April from $15.32 billion a year ago, PTI reported.The sharp fall in imports from the region comes amid disruptions linked to the ongoing Iran conflict and stress around the Strait of Hormuz, a critical global energy transit route.India, the world’s third-largest crude oil importer and consumer, imports more than 80 per cent of its oil requirements, with the Middle East accounting for a substantial share of supplies.The widening trade gap has added to concerns around India’s external sector as elevated crude prices, higher freight costs and sustained foreign exchange outflows continue to pressure the rupee and inflation outlook.The government has in recent weeks announced multiple measures to conserve foreign exchange reserves, including tighter gold import rules, higher import duties on precious metals and calls for fuel conservation.Government estimates also showed services exports at $37.24 billion in April, while services imports were estimated at $16.66 billion.
