Trade Deficit for Jan 2014 at $9.9 Bn, Meets Expectations

2 comments Written on February 11th, 2014 by
Categories: Macro
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Trade data for April to January in FY 2014 shows a contraction in the trade deficit which while low, is not that much lower than earlier.

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In INR terms Exports are up 19% while imports are down 6%. There was a scary downtrend in export growth from September till December, which seems to have paused down.

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Impact: This meets expectations, but it really isn’t spectacular. The Gold import restrictions have constricted imports of Gold which accounts for nearly all of the deficit tightening now. But in a few months, the smugglers will have fake software companies to remit cash as they send in gold through the sea, and then the deficit should begin to widen again (it’s beginning to happen anyhow).T

he next year will be key in determining which direction we go. (Yes, you could pretty much use that statement for anything nowadays) Nothing more to see here, move on, move on.

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The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company. Deepak also provides data research and consulting services, and now lives in Bangalore. Connect with him at deepakshenoy@gmail.com.

2 comments “Trade Deficit for Jan 2014 at $9.9 Bn, Meets Expectations”

the smugglers will have fake software companies to remit cash as they send in gold through the sea.

hey Deepak plzz explain dis.

Software is an intangible so you can say you received it without having much to show for it, and cost it at anything you want :)