In the first 11 months of the current financial year, India has so far imported goods worth more than $ 550 billion. Government sources say that India’s import bill may remain at a record high in FY 2022 and it may even cross the $ 600 billion mark.
The rise in the prices of gold, diamonds and industrial inputs was on the back of higher import bill of India. Due to higher prices, higher bills had to be paid in lieu of imports. Their prices are expected to remain high in the first half of FY2023 as well.
The government recently set a record for the first time exporting more than $400 billion. Many statements were seen regarding this at various levels of the government. However, the government is silent on the hike in the import bill. On Wednesday, March 23, when a press conference was held by the government to give information about record exports or exports of $ 400 billion, no information was given about the import figures.
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However, officials say that the government is worried about the rising import bill. A senior commerce department official said, “The imports have increased in every month of FY 2022 and the government is aware of the dangers of this rising import bill. An action plan is being prepared in this regard.”
Highest ever trade deficit
The official further said, “Annual imports may reach $ 600 billion in FY 2022. In March 2020, imports were $ 31.16 billion, while in March 2021 this figure increased to $ 48.3 billion. We are expecting that The figure for March 2022 could be higher than the pre-corona level and it could be around $ 50 billion.
Due to this, India can register a trade deficit of $ 200 billion this year, which will be the highest ever trade deficit. The deficit between total imports and total exports is called trade deficit.
The trade deficit stood at $176 billion in the first 11 months of FY21, reflecting an increase in the import bill. Officials say that the highest trade deficit of $190 billion was recorded nine years ago in 2012-13 and this year is expected to break this record.
Due to this, India’s current account deficit is also likely to increase. The trade deficit has always accounted for the largest portion of the current account deficit, but net income transfers from abroad are also added to it. Nomura had recently said that India’s current account deficit could be 2.6 per cent of GDP in FY2023 and 1.7 per cent of GDP in FY22, citing a recent increase in imports.
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