The purpose of this research paper is to investigate the impact of oil and non-oil trade in India. The study is based on secondary source of data was collected from Reserve Bank of India during the period 2000 to 2018. The result of the study reveals that trade deficit consistently increasing and un-sustainability of Current Account Deficit in India. The research findings shows that there is a strong confirmation for arises of trade deficit due to heavy rely on import especially oil import from overseas countries. This implies that trade deficit is sustainable in India; contest for non-oil but not for oil. The trade deficit has become further extend may cause huge impact on India economy. This may led to sharp depreciation of India rupees and increase of domestic inflation. Therefore, it is suggested that to reduce dependent on oil import from overseas countries. The study recommends that foreign trade policy and multilateral negotiations improve trade in India.
Impact Factor
2022: 6.012
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