India has a trade deficit with as many as 27 major countries, including China, Australia, Iraq and Iran, during the last three years.
According to Commerce and Industry Minister Nirmala Sitharaman , India generally runs a deficit with those countries from which high-demand commodities are sourced. These include items like crude oil, gold, diamond and fertilizer.
Other countries with which India has a trade gap include Indonesia, Korea, Germany, Canada, Taiwan, Russia and Ukraine.
Trade Deficit Figures:
1. In 2015—16, India’s trade deficit fell 14 per cent to $118.35 billion as compared to previous year (2014-15).
2. Exports fell 15.85% in 2015-16 as compared to previous year (2014-15).
3. Imports dropped 15.28% as compared to previous year (2014-15).
A trade deficit, which is also referred to as net exports, is an economic condition that occurs when a country is importing more goods than it is exporting. The deficit equals the value of goods being imported minus the value of goods being exported.