India’s Trade Deficit Widens in March

India’s trade deficit hit a five-month high in March as merchandise exports fell for a second straight month, making it tougher for policymakers to lift curbs on gold imports that have helped to narrow the country’s current account gap.
Asia’s third-largest economy, which is struggling through its longest period of sub-5 percent economic growth since the 1980s, is seen vulnerable to any shift in capital flows.
Among the “Fragile Five” emerging economies, India suffered from massive capital outflows last year, in part on concerns over a bloated current account deficit, after the US Federal Reserve signalled a trimming down of its monetary stimulus.
Heavy outflows sent the rupee to a record low in August, prompting the authorities to build up foreign-currency reserves and clamp down on gold imports.
India’s trade gap in March widened to USD 10.51 billion, its highest since October 2013, data from the Ministry of Commerce and Industry showed on Friday. Overseas sales of goods fell 3.15 percent from a year earlier to USD 29.58 billion in March.
Merchandise exports for the 2013/14 fiscal year, however, grew 3.98 percent on year to USD 312.36 billion. Together with a 8.11 per cent decline in annual imports, that helped sharply narrow the country’s full-year trade shortfall to USD 138.59 billion from USD 190.34 billion a year ago.

via MoneyControl

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza