Indians' love for electronics is widening trade deficit, weakening rupee
NEW DELHI: Indians’ love for gold is well known, but they have a new-found fascination for electronics. That, however, is coming at a cost.
The relentless rise in purchases of smartphones, TVs and other goods have made electronics India’s second-biggest import item after oil, and is pushing the country’s trade deficit wider.
Trade deficit of a country is the amount by which its imports exceeds the value of its exports.
That’s bad news for the rupee, which is already roiled by worries of costlier imported oil. Economists polled by Bloomberg forecast the current-account deficit to widen to 2.3 per cent of gross domestic product (GDP) in the fiscal year to March 2019, from 1.9 per cent currently.
“The rise in imports of electronic items is already impacting the current-account deficit,” said Saugata Bhattacharya, chief economist at Mumbai-based Axis Bank Ltd. “One way to solve this is to see India integrate more into the global supply chain in the coming years.”
Prime Minister Narendra Modi has banked on his ‘Make in India’ program -- aimed at fostering local manufacturing-- to help cut down the country’s reliance on imports. But global companies have yet to buy into it in a big way.
Government data for the 13 months to May show electronics imports were valued at $57.8 billion, way more than the $35.8 billion worth of gold purchases.
“India’s current account challenge is now not only oil but also electronics,” Uday Kotak, managing director of Kotak Mahindra Bank Ltd. said via a Twitter post. “Gold drops to no. 3. Net gold deficit is down but electronics imports have nearly doubled in 5 years,”he added.
India’s current account challenge is now not only oil but also electronics. Gold drops to no.…
— 乌迪•科塔克 (@udaykotak)
原创翻译：三泰虎 http://jblasi.com/45481.html 译者：Joyceliu
Logic-16 hours ago
we can't manufacture oil, but we certainly can manufacture electronics product.
only if any government care
JIHADI SECULAR THUGS
JIHADI SECULAR THUGS-18 hours ago
No shortage of fools who want to buy iphone just because it is shown on TV and movies being used by actors. They think they will also become hero and heroine by using it. There are many phones better than iphone and its hyped camera.
Srikanta Sahu-16 hours ago-Follow
now where did modi went.. digital India without any resource available.. make in india..without planning..
莫迪去哪儿了？数字印度没有任何可用的资源。印度制造. .没有规划. .
Javed Badshah-uae-16 hours ago-Follow
Make them in India, best solution. Ban the imports.
Manny-14 hours ago-Follow
95% of Indians aren't good at anything except doing Population explosion. Now i see comments here blaming Modi. If you cant do a simple job properly, you have no validity to question Modi you slumdog Indians.