External Trade - Trade deficit stabilises :: Edelweiss

Trade deficit in August at ~USD15.7bn was broadly same as ~USD15.5bn in July, as both imports and exports remained unchanged. However, looking at the longer range, for April-August, trade deficit narrowed to ~USD71bn compared to USD76bn in the same period last year. The decline in trade deficit despite sharp exports slowdown was primarily on account of fall in non-oil imports, particularly gold. In the coming quarter, the challenging external and domestic environment indicate that the current trend is likely to continue; ergo, trade deficit will also remain close to the current range.

Importantly, the current deficit range is not far from our FY13 expectation, in which we expect trade deficit and current account deficit to be ~USD185bn and ~USD65bn, respectively (~3.3% of GDP).

External Trade - Trade deficit stabilises

Regards,

�� -->