Chennai, Sep 11 (TIWN): Flat or decreasing exports, increasing imports due to pent up demand in the domestic market, depreciating rupee, hike in commodity prices including oil, geopolitical situations, restrictions on exports are the major reasons cited by experts for India's increasing trade deficit.

Simply put, trade deficit is a situation in which the value of goods a country imports is greater than the value of goods it exports -- excluding software, remittances and others.

"Exports are slowing down while imports are increasing. This has led to widening trade deficit. The trade deficit was $190 billion last year and around $125 billion for the period from April-August 2022," Madan Sabnavis, Chief Economist, Bank of Baroda, told IANS.

"Exports are slowing down due to the global economy moving to recession. Imports are rising as demand is going up as our economy grows - both oil and non-oil imports," he added.

According to the Ministry of Commerce and Industry, India's merchandise imports were $61.68 billion and exports were $33 billion in August 2022, leaving a deficit of $28.68 billion.

During April-August 2022-23, India's merchandise imports were $317.81 billion while exports were $192.59 billion, leaving a gap of $125.22 billion.

The top five export items are: engineering goods, petroleum products, gems and jewellery, organic/inorganic chemicals, drugs and pharmaceuticals.

Similarly, the top import items are: petroleum, crude and products; electronic goods; coal/coke; machinery - electrical/non-electrical; gold; organic/inorganic chemicals.