India’s goods exports grew 9.1% to $38.13 billion in May, while imports rose 7.7% to $61.91 billion. Even the textiles sector recorded a healthy growth of nearly 10% in May “after several months of sluggishness.
However, despite exports growing faster than imports, the merchandise trade deficit surged to a seven-month high of $23.78 billion in May. This was 5.5% higher than the deficit recorded in May 2023, and 24.5% over April’s trade gap of $19.1 billion, which in turn was the highest in four months. Compared with April, May’s import bill was 14.4% higher, while the value of exports rose 8.9%.
".....When your economy is growing faster than the world, then obviously there will be these twin effects — higher domestic demand will mean less exportable surplus, and your requirements for imports from the rest of the world will be higher than the world’s requirements from you,” - the reply from the Secretary of Commerce (Government of India).
Alright, I understand India's economy is rising faster than the world average. The imports do rise in such economies. But my question is -
Can India sustain its higher growth rate by widening this game to extreme limits? Have all economies seen such gaps in imports and exports while they were growing faster?

A bit of Correction

Can India sustain its higher growth rate for a long time while trade deficit keeps on widening?
Do all economies see such gaps in imports and exports while they grow faster than the global average?
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Can India sustain its higher growth rate for a long time while trade deficit keeps on widening?
Yes, India has a large international service sector. Providing services to the global economy is essentially the same as exports, but don't count as exports. If that sector continues growing it could easily offset a trade imbalance.
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Thanks! That makes sense. Your understanding about economics is excellent.
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Thanks. It is my job.
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Actually, I believe india can sustain their growth. They dont have all the economic troubles the usa or china has.
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India has its own troubles. Poverty and unemployment haven't gone anywhere.
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