India's exports for the month of June has fallen 5.45% to $25.1 billion in June, while imports have dropped 13.46% to $35.3 billion. The trade deficit is thus pegged at $10.3 billion. The sharper drop in import has helped the trade deficit.
Over the last few quarters the high trade deficit has played on the current account deficit, which has surged, due to a falling currency and acceleration in imports.
India's exports growth is expected to remain tepid following weak overseas demand. Import on the other hand has shown signs of slowing down over the last few months, particularly in view of slowing gold imports.
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