India's merchandise trade deficit narrowed to $26.49 billion in August from $27.35 billion in July, as exports slowed after U.S. President Donald Trump hiked import tariffs on Indian goods. Exports in August decreased to $35.1 billion from $37.24 billion in July, while imports dipped to $61.59 billion from $64.59 billion in the previous month.
Economists had expected the August trade deficit to be $25.13 billion, according to a Reuters poll, compared to $27.35 billion in the previous month.
The government estimated services exports in August at $34.06 billion and imports at $17.45 billion, suggesting a total goods and services trade deficit at $9.88 billion.
Exports to the U.S. fell to $6.86 billion from $8.01 billion in July. The U.S. imposed an additional 25% tariff on Indian goods over New Delhi's continued purchases of Russian oil starting August 27, bringing total levies on Indian exports to 50% - among the highest for any U.S. trading partner.
Trade dynamics continued to face pressure from the stalemate in the India-US trade deal. The US, which accounts for about 20 per cent of India’s goods exports, remains a key market, but the lack of progress in negotiations has weighed on outbound shipments.
Source Name : Economic Times