India’s trade deficit widens in December as imports increase

India’s trade deficit last month increased 26% from a year earlier as imports rose.

The deficit for Asia’s third-largest economy widened to $15.7 billion from $12.5 billion in December 2019 after imports climbed about 7% and exports fell less than 1%, the government said in a statement, citing preliminary data.

Gold imports surged by about $2 billion, an 82% jump from the previous year, while petroleum products saw the biggest decrease for any commodity group in trade into and out of the country, the government said. Shipments overseas of drugs and pharmaceutical products increased in value the most among India’s exports, rising 17% from a year earlier.