ARTICLE AD BOX
New Delhi: The Blockade of the Strait of Hormuz has worsened India’s trade imbalance, despite merchandise exports rising 13.78% to hit $43.56 billion in April, according to data released by the Commerce Ministry. The trade deficit has widened to around $26.5 billion from $20.67 billion recorded in March, overshooting market estimates. This pattern has been repeating from the previous financial year, even as exports reached the $860 billion mark.
For exporters, the double-digit rise in merchandise exports has come at a time when shipping has become prohibitively expensive due to the conflict in the Middle East, with the Strait of Hormuz impacting exports as well. Exporters have had to pay more for shipping as freight carriers take a longer route due to the crisis while compressing margins as a result.
On the other hand, imports have surged 10% in April from $65.38 billion a year ago to $71.94 billion this time.
However, the overall trade deficit, including services trade, has provided some relief, narrowing from $11.16 billion a year ago to $7.81 billion this time. Service exports have cushioned the blow due to the Middle Eastern crisis, with service exports increasing to $37.24 billion from $32.85 billion recorded a year ago.
English (US) ·