Explained: What is trade deficit and what does it signify

Another way to look at trade deficits is to look at the outcome of trade agreements on consumers instead of producers.

India’s trade deficit was nearly billion in 2018. (Illustration by CR Sasikumar)

On Monday, India decided that it won’t sign the Regional Comprehensive Economic Participation agreement. While India decided to pull out, the other 15 members of RCEP arrived at a consensus and are likely to formally announce the regional trade pact next year. The government claimed that its decision to pull out of RCEP showed “India’s rising stature in the world”.