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India's trade deficit fell to $26.7 billion in September from
$28 billion in August and $30 billion in July.
In that same period, merchandise exports have moderated from
$36.2 billion in July to $33.9 billion in August, to $32.6
billion in September. The import bill, meanwhile, had dropped to
$59.3 billion in September from $61.9 billion in August.
"Exports are moderating despite some stabilisation in petroleum
shipments, with bulk of the weakness in non-oil, non-jewellery
exports," Rahul Bajoria, India economist at Barclays Bank, said.
India's potentially faster growth path amid a deteriorating
global backdrop could bring the risks of a slower pace of
decline in the trade deficit and that of a wider current account
deficit, Bajoria said.
Despite the trade deficit moderating since the record high of
$30 billion in July, the overall gap remains large, Bajoria
noted.
India's current account deficit remains on track to reach $115
billion, or 3.3% of the gross domestic product (GDP), in the
current fiscal year, he estimates.
"As a result, while the RBI (Reserve Bank of India) continues
its battle to reduce inflation, it will not lose sight of
evolving risks to India's macroeconomic stability."
(Reporting by Nimesh Vora; Editing by Savio D'Souza)
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