India's Trade Deficit -Q1FY23 - A Brief Overview

 India's Trade Deficit - Q1FY23 - A Brief Overview

The Nation's Trade Deficit stood at USD 30 Billion at the end of July 2022. Imports were increased by 43 Percent and the Exports increased by 2.5 Percent. The Export volume was USD 66.27 Billion and the Imports at USD 36.27 Billion.

Generally, the gap between Exports and Imports is called as Trade Deficit (EXIM) or Balance of Trade. India's Major imports are Mineral Fuels, Oil, Iron and Steel, Pearls, Precious Stones and Jewellery. Exports include Petroleum products, Jewellery, Vehicles, Grains, Machinery, Pharmaceutical products and Chemicals.

In terms of Imports, we mostly get Goods and Services from China. In the year 2021, China were contributed 16 Percent of India's Total Imports, followed by 7.6 Percent from the United Arab Emirates(UAE) and 7.3 Percent from the United States. 

It is noteworthy that China's contribution alone is about USD 87.50 Billion. We are getting Electrical and Electronic Equipment, Machinery, Boilers, Nuclear reactors, Chemicals, Plastics and Fertilizers from China. 

In terms of Exports, we are sending more things to the United States. The United States were accounted for 18 Percent of India's Total Exports, followed by 6.5 Percent to United Arab Emirates and 5.9 Percent to China. We are exporting Pearls, Precious stones, Metals, Coins, Pharma and Textile products to United States.

In the First Quarter of the current fiscal year - Q1FY23, Exports stood at USD 121 Billion and Imports at USD 190 Billion. As compared with the first quarter of FY2021-22, the exports grew by 26.82 Percent and the imports by 49.76 Percent. The increase in imports rather than exports has further widened the Country's Trade Deficit.

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