Trade deficit down: Exports fall for 5th month in row; here’s what contained deficit

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Updated: January 15, 2020 7:06:46 PM

indian export falls for continuous fourth month trade deficit also downदेश का निर्यात नवंबर महीने में 0.34 फीसदी की मामूली गिरावट के साथ 25.98 अरब डॉलर रहा.

The merchandise exports contracted 1.8 per cent in December, declining for fifth month in a row month, even as the trade deficit fell to $11.25 billion from a year ago period, the government data released on Wednesday showed. In December 2019, the exports fell to $27.36 billion as against the corresponding period a year ago. The imports also declined  8.8 per cent to $38.61 billion, the data also showed. The trade deficit during December 2018 was $14.49 billion. The oil imports contracted by 0.83 per cent to $10.69 billion, while gold imports dipped by about 4 per cent to $2.46 billion.During April-December 2019-20, exports fell 1.96 per cent to $239.29 billion, imports declined by 8.9 per cent to $357.39 billion, leaving a trade deficit of $118.10 billion.

Also read: Budget 2020: Spurring growth, improving income, more jobs; what economy needs amid sputtering demand

“Exports in December 2019 were USD27.36 billion, as compared to USD27.86 billion in December 2018, exhibiting a negative growth of (-)1.80 per cent. In Rupee terms, exports were Rs. 1,94,764.74 crore in December 2019, as compared to Rs. 1,97,044.76 crore in December 2018, registering a negative growth of (-)1.16 per cent,” the government release said.

Non-petroleum and non gems and jewellery exports in December 2019 were $21.05 billion, as compared to $21.16 billion in December 2018, exhibiting a negative growth of (-)0.54 per cent. Non-petroleum and non gems and Jewellery exports in April-December 2019-20 were $177.81 billion, as compared to $177.65 billion for the corresponding period in 2018-19, an increase of 0.09 per cent.

“With services imports expanding by a sharp 13.5% in November 2019, outpacing the services exports growth of 7.9%, the services trade surplus recorded a contraction of 0.7% on a YOY basis, after having sustained a rise in the previous three months. With the sharp fall in the merchandise trade deficit to US$34.4 billion in Q3 FY2020 from US$50.1 billion Q3 FY2019, we expect the current account deficit to shrink to US$3-5 billion in the just concluded quarter from US$18 billion in the same period of FY2019,” Aditi Nayar, Principal Economist, ICRA said.

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