Trade Deficit widens for India


The article reports the widening Trade Deficit shrinking in India compared to the previous year. The increase in the trade deficit is attributed to very low Exports and increasing Imports on account of the depreciating Rupee that has made the Exports less Price competitive and Imports much more expensive.


Topics covered are Balance of Payments, Trade Deficit , Current Account Deficit, Terms of Trade and Marshall Lerner conditions . Explain using the Exchange Rate diagrams and formulae.


Evaluation will include various strategies to encourage Exports , Investment ,Balance of Payments and pressures on Currency and future International Trade. Also discuss the impact the short term and long term effects of depreciation on Current Account , Balance of payments , Exporters, Importers, Consumers, workers, domestic producers and Government in short term and long term.