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The Commerce and Industry Minister, Suresh Prabhu, will chair an inter-ministerial meeting on Thursday to discuss about the weakening of rupee and widening trade deficit.
According to an official, representatives from the Department of Economic Affairs, Coal Ministry, Steel Ministry, Oil Ministry and Department of Pharmaceuticals are expected to attend the meeting.
The meeting assumes significance as the rupee has hit an all-time high of 73.74 against the US dollar, which would raise the country’s import bill and widen the trade deficit (difference between imports and exports).
Trade deficit stood at a five-year high of $18.02 billion in July. It fell to $17.4 billion in August. During April-August, the country’s exports recorded a growth of 16.13 per cent, while imports grew 17.34 per cent.
Weak rupee has put pressure on the country’s oil import bill. The domestic currency has depreciated nearly 13 per cent since the beginning of this year. Besides having an impact on current account deficit, weak rupee has made imports costlier.
India is the third largest importer of crude oil. Oil imports during the first five months of the current fiscal rose 53.55 per cent to $58.81 billion. Since 2011-12, India’s exports have been hovering at around $300 billion. During 2017-18, the shipments grew about 10 per cent to $303 billion.
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