India's Trade Deficit Widens To $23.5 Billion In July

India's merchandise trade deficit expanded in July as the rise in imports outpaced the increase in exports.

In absolute terms, the trade gap widened to $23.5 billion in July, as compared with $19 billion in the same period in the previous fiscal, according to a press briefing by the Ministry of Commerce and Industry on Thursday.

July exports fell 1.5% year-on-year to $33.98 billion from $34.39 billion in the year-ago period. Imports increased 7.5% year-on-year to $57.48 billion from $53.49 billion a year ago.

The current trend indicates that the country's total exports of goods and services will cross last year's figures, according to Commerce Secretary Sunil Barthwal.

Exports increased 4.15% to $144.12 billion, and imports grew 7.57% to $229.7 billion in the April-June period of this fiscal.

Trade between India and Bangladesh was recently impacted due to the recent violence in the country. But the situation in the violence-hit country is improving, Barthwal told the media on the sidelines of the briefing.

While India is still monitoring trade across the borders, "we expect the trade relations between the countries to be restored and improved." Any disruption in trade due to the violence has already been addressed, he said.