India’s merchandise exports growth grew a marginal 0.5% annually to $34.58 billion in September on a weak base (-2.8%). But trade deficit fell to the lowest level in five months at $20.78 billion, as import growth too was modest at 1.6%.
The trade deficit had jumped to its highest in 10 months to $29.6 billion in August, as exports shrank by a steep 9.3% on year.
Reason the imports were contained at $55.36 billion in September was the sharp fall in gold and oil imports in the month as compared to August. In September gold imports were $4.3 billion as against $10.06 billion in the previous month.
Oil imports were down 10.4% on year to $12.5 billion in September due to sharp fall in international prices of crude. Engineering exports grew 10.5% to $9.8 billion in September.
In the first six months of the financial year, merchandise exports were up just 1.02% to $213.2 billion while imports were up 6.1% to $350.6 billion.
“In merchandise exports India is doing much better than the global average and the rest of the world. There has been growth in shipment of all import export products like engineering goods, electronics, chemicals, drugs and pharma, plastics and readymade garments,” commerce secretary Sunil Barthwal said.
Electronics goods exports were up 7.9% to $2 billion, readymade garment exports were up 17.3% to $1.1 billion.
Agriculture exports saw a sharp rise. Rice exports were up 25% to $974 million, tobacco up 50% to $206 million, coffee exports rose 74% to $158 million while spices exports were up 26% to $334 million.
The Commerce secretary, however, did not give an outlook for the remaining half of the year. “The world is changing very very fast…so we will be waiting and watching,” Barthwal added.
Regarding the impact widening of the conflict in West Asia can have on Indian exports. He said we held a large meeting of all stakeholders recently. “Some issues which are temporary were addressed, but we are also looking at the long term solutions..one meeting with the shipping ministry and industry where we are looking how we can improve India’s share in the shipping transport across the world. So both short term as well as long term measures are being taken.”
Services exports in September were up 7.7% to $30.61 billion while imports were up 18% to $16.32 billion. In April-September services exports were up 9.81% to $180 billion while imports were up 9.59% to $97.39 billion. Overall exports (merchandise and services) in April-September were up 4.86% to $393.2 billion while imports were up 6.89% to $448.05 billion.