New Delhi, October 19 (IANS). India’s trade deficit is expected to remain manageable as the country’s exports to other Asian trading partners such as China, Hong Kong and South Korea have been higher than last year. This information was given in a report.
Aditi Gupta, economist at Bank of Baroda, said that a similar trend is being seen in exports to Spain and Germany also. This will support the country’s export growth in the remaining year also.
Gupta further said that in terms of services, the situation is expected to remain largely stable. This is expected to keep India’s current account deficit largely under control at 1.2-1.5 per cent of gross domestic product (GDP) in FY26. America-India trade deal will be very important in the coming times.
According to the Bank of Baroda report, “Export growth has also been good and diversification into other markets is paying off.”
Gold imports are likely to increase in the second half due to seasonal demand. However, some relief is likely to come from lower crude oil prices, which are expected to remain at current levels amid fears of oversupply.
India’s export growth rate remained stable at 6.8 percent in September, while it had seen a decline of 1 percent in September 2024.
Import growth slowed down due to decline in gold and oil imports. The positive thing is that this year there has been an increase in non-oil and non-gold imports.
India’s merchandise exports have grown by 3 per cent so far in FY26, compared to 1.2 per cent growth in the same period last year.
This year the import growth rate has been 4.5 percent, whereas in FY 2025 it was 9 percent. In the services sector, services exports grew by 5.2 percent this year, after a growth of 12 percent in the same period last year.
However, the report said the decline in services imports helped mitigate the impact on the services balance.
–IANS
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