trade deficit

Pakistan's merchandise trade deficit expands by 20 per cent : report

India is strategically balancing its trade with China, aiming to boost domestic manufacturing and exports while reducing reliance on Chinese inputs. The nation is building resilient supply chains and increasing its export capacity, though a complete decoupling remains unfeasible. Efforts are underway to diversify sourcing and address the widening trade deficit.

India's trade deficit with China has surged to $112.1 billion, driven by a deep reliance on Chinese industrial supplies. Manufacturing sectors like electronics and pharmaceuticals depend heavily on Chinese components, creating significant supply chain risks. Experts urge India to boost domestic production and diversify sourcing to mitigate these vulnerabilities.

Country needs time to build up domestic capacities, till then reduce dependence on those ‘perfect’ imports

Moody's has revised India's FY27 growth forecast down to 6% due to weaker consumer demand and slower industrial output, exacerbated by rising energy costs from the West Asia conflict. Higher import bills and subsidy spending will strain government finances. While strategic reserves offer short-term relief, persistent high energy prices could widen the trade deficit and impact inflation.

The RBI cautioned about potential second-round effects from the West Asia conflict, where supply shocks could morph into demand pressures. Persistent geopolitical tensions and rising energy costs are creating global macroeconomic uncertainty, necessitating continuous assessment of inflation and growth risks.

Typically, the Directorate General of Foreign Trade, operating under the Ministry of Commerce and Industry, issues a notification at the beginning of each financial year specifying the banks authorised by the Reserve Bank of India to import gold and silver.

American businesses are set to receive billions in refunds for unconstitutional tariffs imposed by former President Trump. The US Customs and Border Protection is launching an online portal this week for importers to file claims, with refunds expected within 60-90 days.

Iran’s USD1 war toll on each barrel of oil passing through the Strait of Hormuz could add nearly INR10,000 crore to India’s annual import bill. While the toll is a direct breach of ‘transit passage’ rights, India can use four key diplomatic and legal levers to secure its interests.

The Strait of Hormuz is a narrow stretch which is important for global trade flows, and is alone responsible for the transit of a fifth of the world’s oil supply. Asian economies like India and China source a big chunk of their crude oil, LPG, and LNG requirements via this strait.

The RBI kept its policy rate at 5.25% for the second consecutive meeting, citing concerns over elevated crude oil prices and global uncertainties. Governor Malhotra expressed cautious optimism, assuring markets that temporary forex measures were aimed at curbing speculation and would be reviewed. The central bank also eased capital norms for banks to support credit growth.

Uday Kotak warns of a return to global colonialism, citing geopolitical shifts and US policy. He urges India Inc to boost innovation, manufacturing, and energy security, emphasizing self-reliance. Kotak highlights the changing global power balance and the need for India to seize this turning point with urgency and purpose, preparing for potential structural disruptions.

Fundamentally, foreign exchange reserves tell us about a country’s ability to service its external debt. The more robust the cover, the better a country’s position of economic strength. So how strong is India placed in terms of foreign exchange reserves?

Even as it is confident of India’s ability to come out of the fresh global uncertainty, RBI has flagged five risks due to the US-Iran war that could negatively impact the economy.

The Indian rupee rebounded strongly, gaining 151 paise to 93.19 against the US dollar after the Reserve Bank capped banks' net open positions. Despite this regulatory intervention, underlying pressures from foreign fund outflows, a firming dollar, and high crude oil prices persist, impacting equity markets as well.

India's exports reached $76.13 billion in February 2026, showing strong growth. Imports rose even faster, leading to a wider trade deficit. For the fiscal year, exports are on track for growth. The country previously set a record in exports for the 2024-25 fiscal year. Challenges like the West Asia crisis may impact March exports.

Shiv Sena's Sanjay Raut and Congress's Rahul Gandhi have slammed the Modi government over the rupee's sharp fall against the dollar. They argue this decline reflects a loss of national prestige and signals impending inflation, accusing the government of prioritizing elections over economic stability and offering only rhetoric instead of solutions.

India imports a big percentage of its crude oil, LPG, and LNG needs and a substantial portion of that transits through the Strait of Hormuz which is a narrow maritime route, in effect closed since the start of the US-Israel-Iran war.