Key Points
- Surging crude oil import costs drove a sharp rise in the import bill
- Analysts said persistent external pressure adds to the ongoing currency strain
ISLAMABAD: India’s trade deficit widened to $28.38 billion in April as surging crude oil import costs and elevated global commodity prices pushed the country’s import bill higher and deepened pressure on its external accounts, already facing currency strain in recent weeks.
Official trade data showed imports rose to $71.94 billion during the month, while exports stood at $43.56 billion, resulting in a significantly wider trade gap compared with the previous month and market expectations.
The widening deficit was primarily driven by higher energy import costs, as global crude oil prices remained elevated amid ongoing geopolitical tensions and disruptions affecting key supply routes.
Analysts said India’s import dependence on crude oil continues to make its external balance highly sensitive to global energy market volatility, particularly during periods of sustained price spikes.
Export performance in sectors such as engineering goods, electronics and petroleum products remained steady, but it was insufficient to offset the surge in imports.
Services exports provided partial support to the overall external account, but economists warned that continued strength in oil prices could further increase the deficit in the coming months.
Market observers also flagged potential pressure on the Indian rupee, noting that persistent trade imbalances often translate into currency weakness, adding to recent strain in India’s foreign exchange market.
Economists added that India’s external position remains exposed to fluctuations in global energy markets, given its heavy reliance on imported crude to meet domestic demand.
