The December trade data has recorded the highest ever monthly imports of 59.27 billion, as also highest ever monthly exports of 37.29 billion. Trade deficit has come in at over $20 billion for the fourth month in a row. This was expected and these figures are not a source of worry, said Pronab Sen, Former Chief Statistician.

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India records highest-ever monthly exports and imports in December, trade deficit widens

Increase in imports was on the cards as the recovery proceeded because there would be a lot of suppliers in India, who would not had been able to get their production up again and a lot of that gap would be filled by imports, which is a good thing, he said.

Composition of imports is worrying as it is a reflection of the fact that there has been a significant income distribution change in the country, he mentioned.

For the full interview, watch the accompanying video.

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