The Union Ministry of Commerce and Industry said India’s merchandise trade deficit had increased to $16.6 billion (Rs 1,136 crore) in June 2018 from $12.96 billion (Rs 887 crore)
the previous year. The deficit in June is the highest it has been in five years, Reuters reported.

The numbers were mainly influenced by an increase in oil prices and the weakening of the rupee.

Despite an increase in merchandise exports by 17.57% to $27.7 billion (Rs 1,897 crore) since June 2017, India’s trade deficit widened from $14.62 billion (Rs 1,001 crore) in May.

Speculation over United States-imposed sanctions on Iran, a major source of India’s oil supply, and rising oil prices impacted India’s deficit.

Exporting sectors including petroleum products, chemicals, pharmaceuticals, gems and jewellery and engineering goods help improve the shipments in June.