After a decline for the first time in nine months in June, India’s exports saw a growth in July, even as imports slipped, narrowing the trade deficit last month, the government data released late in evening on Wednesday showed. The exports grew by 2.25 per cent to $26.33 billion in July, government data showed. Imports, however, slipped by 10.43 per cent to USD 39.76 billion, reducing trade deficit to USD 13.43 billion in July. The deficit was $18.63 billion in July last year. The chemical, iron and pharmaceuticals recorded posted positive growth in the last month, the official data showed.
According to the same data, the shipments of gems and jewellery, engineering goods, petroleum products printed negative growth. The oil imports fell 22.15 per cent to $9.6 billion, and non-oil slipped by 5.92 per cent to $30.16 billion.
Also read: WPI inflation falls to over 2-year low; fuel prices pull down core inflation
Cumulatively, during April-July 2019, exports dipped 0.37 per cent to $107.41 billion, while imports were contracted by 3.63 per cent to $166.8 billion. The gold imports dipped 42.2 per cent to $1.71 billion in July.
Meanwhile, India’s merchandise exports contracted for the first time in nine months in June while imports shrank for the first time in four months. Data released by the commerce ministry showed exports in June fell 9.71 per cent to $25.01 billion while imports dipped 9.06 per cent to $40.29 billion, leaving behind a trade deficit of $15.28 billion during the month.
“The decline in exports in June 2019 is due to a number of factors, including a high base effect of an extraordinarily good month in June 2018, the projected weakening of global trade growth to 2.6 per cent in 2019 and many major economies, including the US, Japan, China and the EU, showing negative exports,” Commerce Secretary Anup Wadhawan had then said.