India's imports outpace exports, trade deficit expands to $30.4 billion
India's trade deficit widened to $30.4 billion in June as imports surged by 31%, driven by increased demand for crude oil, electronics, and gold. The government is now urging domestic industries to manufacture imported goods locally to reduce reliance on foreign suppliers.
Why it matters
The widening trade deficit highlights India's ongoing struggle with import dependency and the government's push for domestic industrial self-sufficiency.
India's merchandise imports surged 31% year-on-year to $70.84 billion in June. Merchandise exports rose 15.5% to $40.41 billion during the month, while imports climbed sharply, driven by higher purchases of crude oil, electronics, machinery and precious metals, commerce secretary Rajesh Agarwal said during a press briefing on the trade data.Even as exports posted healthy double-digit growth, the country's trade deficit stood at $30.43 billion, according to government data. During the April-June quarter of the current financial year, exports increased 15.92% to $129.32 billion.
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