India’s merchandise trade deficit widened to $28.38 billion in April, government data showed on Friday, as the West Asia conflict continued to hinder shipments, while disrupting energy imports and making them costlier.
Concerns that the energy shock from the months-long Iran war could slow growth, raise inflation, and hit India’s balance of payments have led to a raft of interventions from policymakers as the rupee plummets to record lows, making it Asia’s worst-performing currency this year.
Economists had expected the trade deficit to be $26.5 billion, according to a Reuters poll, compared with a deficit of $20.67 billion in March.
Merchandise exports rose to $43.56 billion from $38.92 billion in March, while imports rose to $71.94 billion from $59.59 billion, data showed.
India, the world’s third-largest oil importer and consumer, imports more than 80% of its crude oil needs and 60% of its cooking gas, with the Middle East accounting for a large chunk of the supply.
