(MENAFN) India's expanding exchange shortage is dealing with a growing challenge to the nation's financial regain from the Covid-19 epidemic, with approaching dangers that might additional fuel the imbalance of shipments in and out throughout the future months, experts states.
The nation's heavy reliance on commodity imports like oil and coal, joint with raised costs after geopolitical dangers, are constituting to the expanding exchange shortage.
Prateek Maheshwari, assistant professor at the Indian Institute of Foreign Trade in New Delhi stated that “Looking at the developing recessionary trends in some of India’s prominent export markets, especially [the] US and Europe, we may expect a widening trade deficit.”
Adding “[The ] trade deficit affects a country’s forex reserves, which is considered an index of economic strength. Certainly, the widening deficits will have an adverse effect on India’s image in a global economic perspective.”
A weak rupee, which has dropped to its lowest ever in latest weeks, also effects to India's costs when importing goods.
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