India trade deficit narrows in August, exports drop
India’s merchandise exports dropped by 6.05 per cent in August 2019 as compared to same period of last year, on the back of significant dip in shipments from key sectors like petroleum, engineering, leather, and gems & jewellery. Trade deficit, which is the gap between imports and exports, narrowed to US$ 13.45 billion in August from US$ 17.92 billion a year ago.
As per the data released by the Commerce Ministry, merchandise exports increased by 6.05 per cent to US$ 26.13 billion in August 2019, as compared to US$ 27.81 billion in the same month a year ago. In rupee terms, it was down by 3.89 per cent to Rs. 1,85,881.11 crore in August 2019, as compared to Rs. 1,93,397.12 crore in August 2018. Cumulative value of exports for the period April- August 2019-20 was US$ 133.54 billion as against US$ 135.62 billion during the period April- August 2018-19, registering a negative growth of 1.53 per cent. In rupee terms, it was up by 1.18 per cent to Rs. 9,31,055.96 crore from Rs. 9,20,240.02 crore.
Non-petroleum and non-gems and jewellery exports in August 2019 were US$ 19.60 billion, as compared to US$ 20.76 billion August 2018, exhibiting a negative growth of 5.61 per cent. For April- August 2019-20 period, the non-petroleum and non-gems and jewellery exports were US$ 99.41 billion, as compared to US$99.17 billion for the corresponding period in 2018-19, an increase of 0.24 per cent.
On the other hand, imports during August 2019 decreased by 13.45 per cent to US$ 39.58 billion as compared to US$ 45.73 billion in August 2018, and in rupee terms, it was down by 11.46 per cent to Rs. 2,81,606.41 crore from Rs. 3,18,043.86 crore in August 2018. Cumulative value of imports for the period April-August 2019-20 was US$ 206.39 billion, as against US$ 218.81 billion during the April-August 2018-19 period, registering a negative growth of 5.68 per cent. In rupee terms, it was Rs. 14,38,839.05 crore, down by 3.15 per cent from Rs. 14,85,661.27 crore in the same period last year.
Oil imports in August 2019 were US$ 10.88 billion, which was 8.90 per cent lower, compared to US$ 11.94 billion in August 2018. Oil imports in April-August 2019-20 were US$ 55.33 billion which was 6.34 per cent lower compared to US$ 59.07 billion, over the same period last year. Non-oil imports, during August 2019, were estimated at US$ 28.71 billion, which was 15.05 per cent lower than non-oil imports of US$ 33.79 billion in August 2018. Non-oil and non-gold imports were US$ 27.34 billion in August 2019, down 9.33 per cent over the same period of last year. Non-oil and non-gold imports were US$ 136.53 billion in April- August 2019-20, down 5.64 per cent, over the same period of last year.