A weakening rupee has made India’s imports expensive. But exports won’t benefit either, thanks to supply-side bottlenecks and fragile global demand owing to Omicron. Outbound shipments in November were at a low of $30.04 billion; inbound shipments at $52.94 billion meant the gap widened to $22.9 billion. ICRA’s Aditi Nayar expects India’s CAD to widen to 1.4 per cent of GDP in 2021-22. Not good news.
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