India’s Trade deficit narrows to $3.15 billion

India’s trade deficit narrowed to $3.15 billion from $15.36 billion a year ago. It is due to mainly on account of drop in shipments by key sectors such as petroleum, textiles, engineering, gems and jewellery.

Daily Current Affairs Quiz 2020

Key-Points:

Exports in the same month stood at $19.05 billion, while imports were seen at $22.2 billion.

A trade deficit occurs when a country’s imports exceed its exports during a given time period. It is also referred to as a negative balance of trade (BOT).

Balances are calculated for several categories of international transactions

Trade deficits can be shorter or longer term.

Implications of a trade deficit depend on impacts on production, jobs, national security and how the deficits are financed.