Export curbs, higher energy prices may spike trade deficit further in FY23

Revenues from the export of industrial metals would also take a hit from a decline in metal prices

A combination of factors like the export curbs imposed by the government on agricultural commodities and metals, and a continued rise in the prices of crude oil, natural gas and coal is likely to worsen the country’s trade deficit in the current fiscal (FY23).

The country's trade deficit hit a record high of $190.7 billion in the last fiscal year (FY22), up 85.8 per cent year-on-year (YoY) from $102.6 billion, surpassing the previous high of $190.3 billion in FY13. The country's imports were up 55.3 per cent YoY to $612.6 billion last fiscal.

“While the prices of India’s key imports such as