Falling Oil Prices Could Ease Pressure on India’s Trade Deficit

The tentative U.S.-Iran deal and the expected drop in oil prices amid increasing flows from the Middle East are set to help narrow India’s trade deficit, which held at relatively high levels in April and May due to the crude price shock.

Higher refined petroleum products helped India’s trade deficit narrow slightly to $28.21 billion in May from $28.38 billion in April, but the crude import bill nearly doubled compared to the same month last year.

India’s petroleum imports jumped to $22.7 billion last month, up from $14…