Exports from India fell by 9.7 per cent y-o-y to USD 25.01 B, whereas imports have decreased by 9.06 per cent y-o-y to USD 40.29 B in June 2019.
Exports from India have decreased by 9.7 per cent y-o-y to USD 25.01 B, whereas imports have decreased by 9.06 per cent y-o-y to USD 40.29 B in June 2019. Meanwhile, the trade deficit narrowed to USD 15.28 billion in June 2019 from USD 16.60 B in the same month last year and below market expectations of USD 15.64 B. In June 2019, exports of iron ore grew by 154.84 per cent and exports of electronic goods, ceramic products and glassware, spices and drugs and pharmaceuticals grew by 43.78 per cent, 19.88 per cent, 16.78 per cent and 16.17 per cent respectively. On the other hand, oil imports in June 2019 were USD 11.03 B, which was 13.33 per cent lower as compared to USD 12.73 B in June 2018.
Exports from India had increased by 3.93 per cent y-o-y to USD 29.99 B in May 2019, taking cues from increased sales of electronic goods and chemicals, which grew at 50.97 per cent and 20.64 per cent respectively. On the other hand imports to India had increased by 4.31 per cent to an all-time high of USD 45.35 B in May 2019. The surge in imports was driven by purchases of gold and oil, which grew at 37.43 per cent and 8.23 per cent respectively. India’s trade deficit remained at USD 15.36 B in May 2019.
Global gold demand grew by 7% y-o-y to 1,053.3 tonnes in Q1 and jewellery demand was a touch stronger at 530.3 tonnes, chiefly due to improvement in the Indian market, according to the World Gold Council. India is one of the largest gold importers in the world, and the imports mainly take care of demand from the jewellery industry. However, the centre had announced earlier that it would curb the non-essential imports, particularly the gold imports to check the widening current account deficit.