India's External Sector Shows Resilience Amid Oil Price Pressures

India's external sector has shown resilience in the face of rising oil prices, according to an Axis Bank report. The country's refining surplus acted as a buffer against increasing oil costs.

The goods trade deficit stood at around $27 billion in August, which annualizes to $336 billion or 8.6% of GDP on a seasonally adjusted basis. This is roughly the same level as last year, with declining gold imports offsetting higher oil and non-oil, non-gold deficits.

Strong export growth contributed to this resilience, with goods exports rising by 26% year-over-year. Non-oil imports grew at a rate of 19%, while gold imports remained 71% below trend. Oil imports, however, declined month-on-month.