Ludhiana, November 6
India’s widening trade imbalance has come under sharp criticism from the World MSME Forum, which has demanded the resignation of Commerce Minister Piyush Goyal. The Forum claims that the ministry has failed to protect domestic industries as the country’s international trade deficit surged by 86 per cent in just five years.
According to the Forum’s analysis, India’s trade deficit, which was Rs. 12.86 lakh crore in 2019, has reached Rs. 23.94 lakh crore in the current financial year. The Forum attributes this to a sluggish growth in exports and a steep rise in imports. During the past year, exports increased only slightly—from Rs. 36.18 lakh crore to Rs. 37.03 lakh crore—while imports jumped from Rs. 56.16 lakh crore to Rs. 60.98 lakh crore, expanding the deficit by nearly Rs. 4 lakh crore.
Giving further details, the Forum president Badish Jindal said that they have noted that India’s growing dependence on imports from China remains a major concern. “The India–China trade deficit has worsened from Rs. 5.46 lakh crore in 2021–22 to Rs. 8.39 lakh crore this year. During last 1 year India’s exports to China fell by 12.58 per cent, while imports rose by 13.92%, highlighting the weakening effect of the Make in India initiative”, he observed. The Forum has also opposed the government’s move to provide “safe passage” to Chinese exports, warning that such measures are damaging the domestic manufacturing ecosystem.
The World MSME Forum has urged the government to review its trade pacts and renegotiate international agreements to protect Indian industries. It stated that, similar to the United States, which is facing a $1.2 trillion trade deficit and is using tariffs to correct its imbalance, India is also heading toward an unsustainable trade situation.
The Forum cautioned that if the current trends persist, India’s trade deficit could cross Rs. 30 lakh crore next year. This, it said, would have severe repercussions for the Indian economy and might force the government to increase taxation to offset the fiscal losses.
The Forum emphasized that India’s trade surplus of around Rs. 3.80 lakh crore with the United States remains one of the few positive aspects of the nation’s global trade, but warned that even this could erode if relations between the two countries deteriorate.
Calling for accountability, the World MSME Forum stated that the Commerce Ministry’s failure to contain the deficit reflects a lack of effective industrial and trade policy. It added that the growing imbalance over the years has undermined India’s competitiveness and increased reliance on foreign markets.
