India Trade Data: It is a time of crisis for the Indian economy. Exports have been hit hard. Import has crossed all limits. Due to this the trade deficit has reached its peak. Gold has also broken all previous records of import. In such a situation, the foreign exchange reserves of the treasury will be empty. Rupee will fall against dollar. It is going to affect everything from employment to business. The figures of the Ministry of Commerce of the Government of India testify to this. According to this, India’s trade deficit has reached $37.84 billion in November, breaking all previous records. At the same time, gold import is also at a record all-time high. Gold worth $14.8 billion was imported in November.
Maths messed up due to surge in gold imports
According to experts, the main reason why trade deficit i.e. the situation of imports being more than exports has become so dire is the surge in gold imports. Because in the import of 37.84 billion dollars, the share of gold alone is 14.8 billion dollars. Compared to the month of November last year, India’s exports have fallen by 4.85 percent to 32.11 billion dollars. According to the data of the Union Commerce Ministry, compared to the month of November last year, India’s imports have increased by 27 percent to 69.95 billion dollars. Due to high demand for edible oil, silver and fertilizers, imports are increasing in this manner.
After all, what will be the impact on the public?
The biggest reason for such increase in trade deficit i.e. more imports than exports is that the country is not able to produce goods and services in sufficient quantity for the needs of its people. Therefore, it has to be compensated from other countries. Obviously these goods and services will be expensive for the countrymen. This will increase inflation in the country. Foreign currency will have to be opened for import. This will reduce the foreign exchange reserves, dollars will have to be raised to compensate for this and the rupee will weaken. Indian companies in sectors where there is more import will become weak and employment crisis may arise there.
Also read:
HDFC Bank-SEBI Update: SEBI reprimanded HDFC Bank! Why did the regulator have to give this warning to the bank?
