NEW DELHI: Flagging trade deficit and imports hitting record high, Leader of Opposition in Lok Sabha, Rahul Gandhi on Wednesday hit out at the Centre for the economic woes, claiming it was a result of the government prioritising “crony” businesses over play-fair ones.
“What happens when a government prioritises crony businesses over play-fair businesses? Result: Weakened manufacturing sector, depreciating currency, record high trade deficits, high interest rates, falling consumption and soaring inflation,” Gandhi said on X.
The Raebareli MP’s statement follows India’s trade deficit reaching a record $37.9 billion in November, driven by a surge in imports, which hit an all-time high of nearly $70 billion. This was largely due to soaring gold imports, while exports declined.
Gold imports skyrocketed over fourfold to $14.9 billion, up from $3.5 billion the previous year, making gold the second-largest import category after petroleum, with a 21% share of total imports.
Although overall oil imports rose by 8%, petroleum product exports, including petrol and diesel, dropped by 50% to $3.7 billion.
Similarly, gems and jewelry exports declined by 25% to $2.1 billion, contributing to an almost 5% decrease in total exports, which stood at $32 billion.
However, the commerce ministry said that “non-oil exports are growing at a steady pace,” pointing at the decline in merchandise exports to fluctuations in petroleum prices. Despite this drop, the ministry expressed optimism about the outlook for non-petroleum exports and services over the next four months.
