A country's trade deficit marks the difference between the amount of good that has flowed in, and the products which have been sent out. As global demand is affected by inflation and a recession, India's imports have outpaced its exports. As the outflow of goods from the country grew by only 9 per cent between April and December 2022, the imports into India grew by 25 per cent.
This growing gap has widened the trade deficit to $23.89 billion, and pushed down merchandise value to $34.48 billion.
As for December, the exports fell by 12 per cent, while imports also witnessed a decline.
