Slow Exports Growth Takes Trade Deficit To Record High Of $23 Bn

State of the economy

- Indivjal Dhasmana

Trade deficit touched a record high of $23.27 billion in November as exports growth days in the festive month.

This may have repercussions on the current account balance, which was in surplus at 0.9 per cent of GDP, in the first quarter of the current fiscal year.

The current account balance is widely expected to turn into a deficit at around one per cent of GDP during 2021-22.

Exports growth fell to 26.49 per cent in November from 43.05 per cent in the previous month. Imports also grew at a slower pace of 57.18 per cent from 62.51 per cent during this period.