India's trade balance poor compared to peers.

Data Source: The Economist

 

That India has a negative trade balance is well known. Weakening exports have been one of the culprits as the global macro environment remains subdued. But India's import bill has also been rising. This has largely been due to a rise in imports of oil and gold. This has put pressure on its trade balance which has slipped in the red effectively making it the worst performer among the BRIC countries. Indeed, its peers China, Russia and Brazil are in a much better shape as they have reported surpluses in the last 12 months. For India, the problem is further compounded by the fact that it also has a rising fiscal deficit that it needs to bring down.