Weaker exports in November have widened India’s trade deficit. The November trade deficit at $23.3 billion surpassed the previous high of $22.6 billion in September, data showed.
“The deficit widened mainly due to a sharper fall in exports than imports, possibly reflecting rising Covid cases in some of the key markets. Even as the trade deficit is likely to stay high in 2HFY22 (second half of financial year 2022), we pencil in some moderation from current levels. We revise up our FY2022 CAD/GDP (current account deficit / gross domestic production) estimate to 1.6 per cent with USD-INR in the range of 74.5-76.5 in the near term,” a report from Kotak Securities said.
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