.jpeg)
India’s Import Bill Surges as Rupee Hits Record Low, Trade Deficit Widens to $41.68 Billion
Import: The country's import bill has once again seen an increase. This is due to the weakening rupee and rising crude oil prices. Despite progress under the Make in India initiative, India remains heavily dependent on imports of high-value electronic components such as semiconductors, display panels, camera sensors, and AC compressors.
The country's import bill is rising sharply once again. The reasons are a weak rupee, rising global prices of gold and crude oil, and continued dependence on imported electronic components. This resulted in a widening trade deficit of $41.68 billion in October. The weak rupee is the biggest reason for India's rising import burden. A depreciating currency means India has to spend more to purchase the same amount of foreign goods. Since the country imports large quantities of crude oil, gold, and electronic components, even a slight decline in the rupee increases the total import bill.
The rupee plummeted to an all-time low of below 90 against the US dollar on December 3 and emerged as the worst performing Asian currency.
Global gold prices have risen amid inter-national tensions and economic uncertainty. Domestic prices have fallen slightly to ₹1.33 lakh per 10 grams due to a decline in local demand. The rise in international prices means India is paying more dollars for the same amount of gold, increasing its overall import bill.
Around a dozen electronics companies imported parts and products worth over ₹1.21 lakh crore in 2024-25. This is a 13% increase from the previous year.
Want to get your story featured as above? click here!
Want to get your story featured as above? click here!
Crude oil continues to be the biggest burden on the import bill, even when oil prices remain normal. India imports more than 85% of its crude oil needs. While prices hovering around $63-64 per barrel may make the overall price seem manageable, a weak rupee increases costs exponentially.
