1 hr ago

Electronics Emerges as India’s New Oil Amid $40 Billion Deficit

India buys more goods from other countries than it sells to them.

This difference is called a trade deficit.

The overall deficit became smaller in August, falling to $27 billion.

However, electronics alone created a deficit of about $8 billion that month.

Since April, the electronics deficit has reached nearly $40 billion.

India’s exports are growing, especially electronics and engineering products.

A weaker rupee may have made Indian goods cheaper for foreign buyers.

But exports of labour-intensive mid-tech products remain weak.

New trade agreements could lower tariffs and help these exports grow.

Key facts

August goods trade deficit: $27 billion, down from $32 billion in July
Seasonally adjusted deficit: $23 billion in August, compared with $31 billion in July
Electronics deficit: About $8 billion in August and nearly $40 billion since April
Services trade surplus: Estimated at around $17 billion in August, compared with $18 billion in July
Non-oil export growth: Exports rose sequentially for a fifth consecutive month
Currency movement: The INR depreciated 12% against the US dollar, 21% against the GBP and 25% against the EUR
Key export markets: Singapore, Malaysia, Hong Kong, South Africa and Mainland China

thehansindia.com · 2 hrs ago