By Joshua Kirby
India's trade deficit widened on year in July as exports fell back slightly and imports rose, pointing to robust domestic demand.
The South Asian giant booked a deficit in its merchandise trade of $23.5 billion euros, widening from $19.0 billion in the same month a year earlier and from $20.08 billion in June, government figures showed Wednesday.
Imports of goods including silver and staples like vegetable oil rose on year, while exports fell back by 1.5%, including those of petroleum products, gems and ceramic products.
Still, exports from India--which produces large amounts of export goods including pharmaceuticals and foodstuffs such as rice, sugar and cereals--could see a boost as inflation eases, reducing production costs. Prices rose at their lowest rate in five years in July, according to figures published earlier this week, suggesting the country is emerging from the high-inflation cycle booked over the last couple of years.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
08-14-24 0704ET
