Hindi English Translation || Editorial || Watch the gap: On widening trade deficit

Watch the gap: On widening trade deficit

The widening (चौड़ा करना, बढ़ना, फूलना) trade deficit (व्यापार घाटा) puts more pressure on the rupee and aids growth-retarding (काम करना, विलंब करना, धीमा करना) inflation (मुद्रा स्फ़ीति).

Official data on India’s merchandise (व्यापार, माल, उत्पाद) trade for April give reason for cheer (प्रसन्नता, उत्साह, आशावाद) at first glance (पहली नज़र में, इसके चेहरे पर). Emerging from a record export performance during the just-concluded financial year, outward (बाहर का) shipments for the month rose 24.2% from a year earlier, with electronics and chemicals showing healthy expansion (विस्तार, वृद्धि, विकास), while petroleum products more than doubled. However, imports continued to outpace (आगे बढ़ना, पार करना, अधिक होना) exports, growing by 26.6% to broaden (व्यापक बनाने) the goods trade deficit, which widened to $20.07 billion from $18.5 billion in March. The trade deficit — the extent (degree, scale, level, magnitude, scope) to which the import bill exceeds export receipts (प्राप्तियों, राजस्व, लाभ) — worryingly (चिंताजनक रूप, व्याकुलता से) breached (break, contravene, violate) $200 billion for a rolling (not having a fixed date; rising and falling) 12-month period for the first time in April, impacted predominantly (मुख्य रूप से, अधिकतर) by petroleum imports of $172 billion. Global crude oil (the raw natural resource that is extracted from the earth and refined into products such as gasoline, jet fuel, diesel and other petroleum products) prices have surged (rise or increase suddenly) by more than 40% in 2022 in the wake of (as a result of some event, especially an unpleasant one; in the aftermath of, as a consequence of, on account of, because of, owing to) Russia’s war on Ukraine, swelling (सूजना, फैलाना) the import bill. The early onset (start, beginning, arrival) of the Indian summer, with a heatwave ((a long period of) hot weather, hotness, humidity), has bolstered (increase, augment, add to; fortify, strengthen, support, reinforce, buttress) power demand (it refers to the maximum amount of electrical power that is being consumed at a given time, as opposed to energy which is the amount of power used over a period of time), setting the pace for coal imports, which grew 136% last month, notwithstanding (in spite of, despite, regardless of) record output by key domestic supplier Coal India (Coal India Limited (CIL) the state-owned coal mining corporate came into being in November 1975. Coal India Limited is an Indian government-owned coal mining and refining corporation. It is under the ownership of Ministry of Coal, Government of India headquartered in Kolkata, West Bengal, India). For the first time ever, the Ministry of Power has set timelines (schedule, deadline) for States to import coal over the next few months, a far cry from the 16% year-on-year (year over year (for comparison)) decline (fall, drop, slump, tumble) in imports of the fuel in the April 2021-January 2022 period and a clear portent (sign/indication, forecast, prediction) that the bill for overseas (relating to a foreign country) purchases of coal is also set to (start doing something vigorously) swell.

Monitoring the trade deficit is crucial as this has a direct bearing on the current account deficit (CAD) (the amount by which money relating to trade, investment etc going out of a country is more than the amount coming in). Disconcertingly (unsettlingly, disturbingly, worryingly), foreign direct investment (Investment from one country into another (normally by companies rather than governments) that involves establishing operations or acquiring tangible assets, including stakes in other businesses), which typically helps bridge (connect, join; overcome, reconcile) the CAD, has seen a moderation (reduction, diminishing, lessening, decrease, contraction). And, the wider the CAD, the greater the downward (descending, falling, sinking, sliding, slipping, going down) pressure on the rupee, which has already weakened considerably (significantly, substantially, markedly, noticeably) since the conflict (warfare, war, armed conflict,, combat, battle) in eastern Europe began in February. A weaker rupee, in turn (successively, sequentially), makes imports costlier, potentially (likely, possibly, probably) widening (increasing, swelling, amplifying, enlarging) the trade deficit, and thus (like that, in that way, in that manner; therefore, accordingly, hence, as a result, because of that) triggering (cause, produce, bring about, prompt) a vicious cycle. The RBI has sought to steady (stabilize, balance, fix (at a level)) the rupee against wild (uncontrolled, unrestrained, out of control, unconstrained) swings (fluctuation, change, shift, switch, variation, oscillation), evident in the dip (decrease, fall/drop, slump) in foreign exchange reserves to $600.4 billion (April 22), from $640 billion just six months earlier. But a central bank (the banking regulator of a county’s banking system. (e.g. The Reserve Bank of India (RBI) is the central bank of India)) can draw on the reserves to ease (decrease, lessen, reduce, lower) any rupee weakening only to a limited extent. The RBI also has its hands full with the battle (struggle) against imported inflation (when the general price level rises in a country because of the rise in prices of imported commodities, inflation is termed as “imported inflation”) as global commodity prices remain sharply elevated (increased, raised). To help avoid added stress, the Government must consider additional incentives (payment or concession; inducement, motivation, stimulus) for exports, while encouraging local production of items that strain (overburden, exert excessively) the import bill. The coal crisis could have been averted (prevent, stop, avoid) with better advance estimates of power demand as the country emerged from the worst of the pandemic, and optimal (most favourable, optimum, ideal, perfect) allocation of coal-carrying rail wagons (carriage, wagon, compartment). Policymakers can ill afford to let their guard down on trade imbalances (trade deficit) and risk growth-retarding (relating to something that slows down (or delays or decelerates) growth) inflation and more pressure on the rupee.

Courtesy: The Hindu

Important Word List With Meaning

1.widen (verb)

Hindi Meaning - चौड़ा करना, बढ़ना, फूलना
English Meaning - increase, swell, enlarge.

2.trade deficit (noun)

Hindi Meaning - व्यापार घाटा
English Meaning - a trade deficit (a deficit in the balance of trade) occurs when the value of a country’s imports exceeds that of its exports. It is also called a trade gap.

3.retard (verb)

Hindi Meaning - काम करना, विलंब करना, धीमा करना
English Meaning - delay, slow down, postpone, detain, decelerate.

4.inflation (noun)

Hindi Meaning - मुद्रा स्फ़ीति
English Meaning - simply meaning “cost of living”; increase of price level of goods & services and vice versa decrease of currency value.

5.merchandise (noun)

Hindi Meaning - व्यापार, माल, उत्पाद
English Meaning - goods, commodities, produce, product.

6.cheer (noun)

Hindi Meaning - प्रसन्नता, उत्साह, आशावाद
English Meaning - cheerfulness, optimism, confidence, buoyancy, hopefulness.

7.at first glance (phrase)

Hindi Meaning - पहली नज़र में, इसके चेहरे पर
English Meaning - on the face of it, outwardly, apparently.

8.outward (adjective)

Hindi Meaning - बाहर का
English Meaning - going out from a place.

9.expansion (noun)

Hindi Meaning - विस्तार, वृद्धि, विकास
English Meaning - increase, growth, development.

10.outpace (verb)

Hindi Meaning - आगे बढ़ना, पार करना, अधिक होना
English Meaning - surpass, exceed, be more than.

11.broaden (verb)

Hindi Meaning - व्यापक बनाने
English Meaning - widen, increase, enlarge.

12.receipts (noun)

Hindi Meaning - प्राप्तियों, राजस्व, लाभ
English Meaning - proceeds, profits, earnings, returns, income, revenue, gain, yield, turn over.

13.worryingly (adverb)

Hindi Meaning - चिंताजनक रूप, व्याकुलता से
English Meaning - unsettlingly, disturbingly, disconcertingly.

14.predominantly (adverb)

Hindi Meaning - मुख्य रूप से, अधिकतर
English Meaning - mainly, mostly.

15.swell (verb)

Hindi Meaning - सूजना, फैलाना
English Meaning - increase, rise, enlarge, widen, broaden.

16.widening (adjective)

English Meaning - increasing, swelling, amplifying, enlarging.

17.mind/watch the gap (phrase)

English Meaning - warning/instruction given (particularly to alert commuter to be aware of the space between the metro train and the platform).

18.put pressure on (phrase)

English Meaning - affect something; push for something.

19.growth-retarding (adjective)

English Meaning - relating to something that slows down (or delays or decelerates) growth.

20.extent (noun)

English Meaning - degree, scale, level, magnitude, scope.

21.breach (verb)

English Meaning - break, contravene, violate.

22.rolling (adjective)

English Meaning - not having a fixed date; rising and falling.

23.crude oil (noun)

English Meaning - the raw natural resource that is extracted from the earth and refined into products such as gasoline, jet fuel, diesel and other petroleum products.

24.surge (verb)

English Meaning - rise or increase suddenly.

25.in the wake of (phrase)

English Meaning - as a result of some event, especially an unpleasant one; in the aftermath of, as a consequence of, on account of, because of, owing to.

26.onset (noun)

English Meaning - start, beginning, arrival.

27.heatwave (noun)

English Meaning - (a long period of) hot weather, hotness, humidity.

28.bolster (verb)

English Meaning - increase, augment, add to; fortify, strengthen, support, reinforce, buttress.

29.(power) demand (noun)

English Meaning - it refers to the maximum amount of electrical power that is being consumed at a given time, as opposed to energy which is the amount of power used over a period of time.

30.set the pace (phrase)

English Meaning - lead the way in doing something.

31.notwithstanding (preposition)

English Meaning - in spite of, despite, regardless of.

32.Coal India (noun)

English Meaning - Coal India Limited (CIL) the state-owned coal mining corporate came into being in November 1975. Coal India Limited is an Indian government-owned coal mining and refining corporation. It is under the ownership of Ministry of Coal, Government of India headquartered in Kolkata, West Bengal, India.

33.timeline (noun)

English Meaning - schedule, deadline.

34.be a far cry from (phrase)

English Meaning - to be entirely different from something.

35.year-on-year (adjective)

English Meaning - year over year (for comparison).

36.decline (noun)

English Meaning - fall, drop, slump, tumble.

37.portent (noun)

English Meaning - sign/indication, forecast, prediction.

38.overseas (adjective)

English Meaning - relating to a foreign country.

39.set to (phrasal verb)

English Meaning - start doing something vigorously.

40.have a bearing on (phrase)

English Meaning - have a relevance, relation or connection to something; have an influence, impact or effect on something.

41.current account deficit (CAD) (noun)

English Meaning - the amount by which money relating to trade, investment etc going out of a country is more than the amount coming in.

42.disconcertingly (adverb)

English Meaning - unsettlingly, disturbingly, worryingly.

43.foreign direct investment (FDI) (noun)

English Meaning - Investment from one country into another (normally by companies rather than governments) that involves establishing operations or acquiring tangible assets, including stakes in other businesses.

44.bridge (verb)

English Meaning - connect, join; overcome, reconcile.

45.moderation (noun)

English Meaning - reduction, diminishing, lessening, decrease, contraction.

46.downward (adjective)

English Meaning - descending, falling, sinking, sliding, slipping, going down.

47.considerably (adverb)

English Meaning - significantly, substantially, markedly, noticeably.

48.conflict (noun)

English Meaning - warfare, war, armed conflict,, combat, battle.

49.in turn (phrase)

English Meaning - successively, sequentially.

50.potentially (adverb)

English Meaning - likely, possibly, probably.

51.thus (adverb)

English Meaning - like that, in that way, in that manner; therefore, accordingly, hence, as a result, because of that.

52.trigger (verb)

English Meaning - cause, produce, bring about, prompt.

53.vicious cycle/circle (noun)

English Meaning - a recurring series of events in which bad actions bring about bad results and so on’ (whereas virtuous cycle/circle means ‘a recurring series of events in which good actions bring about good results and so on’.

54.sought past tense of seek (verb)

English Meaning - try, aim, attempt.

55.steady (verb)

English Meaning - stabilize, balance, fix (at a level).

56.wild (adjective)

English Meaning - uncontrolled, unrestrained, out of control, unconstrained.

57.swing (noun)

English Meaning - fluctuation, change, shift, switch, variation, oscillation.

58.dip (verb)

English Meaning - decrease, fall/drop, slump.

59.foreign exchange reserves (noun)

English Meaning - Foreign exchange reserves are the amounts of assets /money in foreign currencies that a country has in its central bank (in India, it is Reserve bank of India).

60.central bank (noun)

English Meaning - the banking regulator of a county’s banking system. (e.g. The Reserve Bank of India (RBI) is the central bank of India).

61.draw on (phrasal verb)

English Meaning - make use of, put to use, use, utilize, deploy.

62.ease (verb)

English Meaning - decrease, lessen, reduce, lower.

63.have one’s hands full (phrase)

English Meaning - to be very busy; to be completely occupied; engaged in, involved in, working at, hard at work.

64.battle (noun)

English Meaning - struggle.

65.imported inflation (noun)

English Meaning - when the general price level rises in a country because of the rise in prices of imported commodities, inflation is termed as “imported inflation”.

66.elevated (adjective)

English Meaning - increased, raised.

67.stress (noun)

English Meaning - strain, pressure, tension; trouble, difficulty.

68.incentive (noun)

English Meaning - payment or concession; inducement, motivation, stimulus.

69.strain (verb)

English Meaning - overburden, exert excessively.

70.avert (verb)

English Meaning - prevent, stop, avoid.

71.estimate (noun)

English Meaning - rough calculation, approximation, evaluation, estimation, judgement.

72.pandemic (noun)

English Meaning - the worldwide spread of a new disease; The illness spreads around the world and typically affects a large number of people across a wide area.

73.optimal (adjective)

English Meaning - most favourable, optimum, ideal, perfect.

74.wagon (noun)

English Meaning - carriage, wagon, compartment.

75.cannot afford/can ill afford (phrase)

English Meaning - if you cannot afford to do something, you must prevent it from happening because it would be embarrassing and cause problems (if it happens).

76.drop/lower/let down one’s guard (phrase)

English Meaning - to relax; to become less careful; to stop being vigilant; to be less alert.

77.balance of trade (BOT) or trade balance (noun)

English Meaning - the balance of trade (BOT), also known as the trade balance, refers to the difference between the monetary value of a country’s imports and exports over a given time period. A positive trade balance indicates a trade surplus while a negative trade balance indicates a trade deficit.

78.trade imbalance (noun)

English Meaning - trade deficit.

79.imbalance (noun)

English Meaning - disparity, variation, variance, disproportion, unevenness, lopsidedness.