Rahul slams the government as the trade deficit has reached a record high

Congress Leader and Opposition Leader in the Lok Sabha Rahul Gandhi. | Photo credit: ANI

Rahul Gandhi, Leader of the Opposition in the Lok Sabha, on Wednesday (Dec 18, 2024) criticized the Modi government, saying that prioritizing crony firms over honest ones is leading to a weakened manufacturing sector, currency depreciation, record high trade deficits, high interest rates, declining consumption and rising inflation.

Citing a media report stating that the trade deficit and imports have reached a record high, Mr Gandhi addressed the government.

Read the main article: Trade shock: on the November trade estimates

“What happens when a government gives priority to crony companies over honest companies?” said Mr. Gandhi.

“Result: weakened manufacturing sector, devaluing currency, record high trade deficits, high interest rates, falling consumption and rising inflation,” he said in a post on X.

After recording double-digit growth in October, India’s exports contracted 4.85 percent year-on-year to $32.11 billion in November, while the trade deficit widened to a record high of $37.84 billion due to a record surge in gold imports. .

Imports rose 27 percent year-on-year to a record $69.95 billion in November, reflecting large inbound shipments of vegetable oil, fertilizer and silver, according to Commerce Department data.

Gold imports rose to a record high of $14.8 billion during the month under review, up from $3.5 billion in November 2023.

Cumulatively, during April-November this fiscal, exports rose 2.17 percent to $284.31 billion and imports rose 8.35 percent to $486.73 billion.

The trade deficit, the difference between imports and exports, widened to $202.42 billion in April-November 2023 from $170.98 billion in April-November 2023.