All good things must come to an end. The double-digit growth streak of India's export numbers halted in November, with a modest 4.2 per cent growth over a year ago. This, after the government conceded that it goofed up the exports value reported between April and October. Turns out exports were lower by $9.4 billion in this eight-month period. That means inflated numbers to the extent of 5.5 per cent.
While it is not new for the government to correct key economic indicators — rejig in the inflation numbers and index for industrial production being regular phenomena — the export rejig has an implication on the balance of trade.
This faux pas has only added $9.4 billion to the trade deficit, taking it to $116.8 billion. With this, the government expects the trade deficit to cross the $150-billion mark, worsening the current account deficit situation. This is no good news for the rupee and the steep inflation.