In fact, in the previous month, India's trade deficit unexpectedly widened, which created additional pressure on the country's currency. In February of this year, India's trade deficit increased to $14.12 billion, whereas in January it was $9.74 billion. This signifies a significant increase in the trade deficit in the country as a result of accelerated growth in imports while exports declined.
According to the provided data, India's exports in February decreased by 0.64% and amounted to about $27.67 billion, while imports increased by 6.98% and reached $41.80 billion. This indicates that the difference between exports and imports has significantly risen, leading to an increase in India's trade deficit.
Exporters note that the increase in the trade deficit may negatively impact the Indian rupee and also affect the financial markets of the country. Furthermore, against the backdrop of a deteriorating economic situation in connection with the coronavirus pandemic, such a rise in the trade deficit may add additional problems for the Indian economy as a whole.
It is important to note that the increase in the trade deficit requires careful monitoring and a potential reassessment of the country’s economic policy to stabilize the situation and strengthen the national currency.
