India’s export situation went a little weird in September, with the deficit going up 40% to $14 bn (for the month). This is the biggest deficit since May 2013, when we had a record level of gold imports.
Imports grew 26% while exports went up by only 2.7%!
It wasn’t just oil – while oil imports went up 10%, non-oil imports were up more than 36%!
Hopefully this is a one-off piece of data. Otherwise even the fall of the crude price will not help us too much! The rupee is now under some serious pressure, and increasing imports/slowing export growth does not look good.
