Statsguru: Six charts explain why India's trade deficit is widening

The IMF revised India's growth downward, and data from the commerce ministry show that the trade deficit is widening

The International Monetary Fund (IMF) recently revised the global growth projection downward and reduced this year’s forecast from 3.6 per cent in April’s projection to 3.2 per cent in its July update of the World Economic Outlook. In October 2021, the international body had projected 4.9 per cent growth in world output for 2022 (chart 1). 

The revision in trade forecasts is even starker. While the IMF projected trade in goods and services to grow at 6.7 per cent in 2022 in its October report, the latest projection envisages growth of 4.1 per cent (chart 2). As global growth and