Trade deficit widens

Financial Chronicle - - FRONT PAGE - PARNALI KSHIRSAGAR

IN­DIA’S trade deficit widened to 35-month high of $14.02 bil­lion in Oc­to­ber as ex­ports on-year dropped for the first time since July 2016, the gov­ern­ment data showed on Tues­day. In Septem­ber, the trade deficit was $8.98 bil­lion.

“Al­though the mer­chan­dise trade deficit flared up in Oc­to­ber, it may not be a source of alarm, as the av­er­age trade deficit for Septem­berOc­to­ber is in line with the trend in July and Au­gust,” said Aditi Na­yar, prin­ci­pal econ­o­mist at Icra.

Im­ports in­creased at a faster pace to $34.49 bil­lion in Oc­to­ber against $34.49 bil­lion same month a year ago, while ex­ports fell to $23.09 bil­lion in Oc­to­ber against $28.61 bil­lion in Septem­ber and $23.36 bil­lion same month a year ago.

The con­trac­tion in mer­chan­dise ex­ports in Oc­to­ber partly re­flects an un­favourable base ef­fect, as well as up fronting of ship­ments to Septem­ber, with gems & jew­ellery and tex­tiles un­der­pin­ning the con­trac­tion. Gems and jew­ellery ex­ports fell to $3.31 bil­lion in Oc­to­ber from $4.78 bil­lion in Septem­ber. But gold im­ports in­creased to $2.94 bil­lion in Oc­to­ber against $1.71 bil­lion in Septem­ber and $3.50 bil­lion same month a year ago. Ex­ports of en­gi­neer­ing goods fell to $5.92 bil­lion against $7.33 bil­lion in Septem­ber. In­dia, world’s third largest con­sumer of crude oil, im­ports 82 per cent of its re­quire­ments and net oil im­ports stood at $92.86 bil­lion against $8.18 bil­lion in Septem­ber, 27.89 per cent higher than oil im­ports val­ued at $72.61 bil­lion in Oc­to­ber 2016.

Im­ports of pulses stood at $238.41 mil­lion in Oc­to­ber against $364.3 mil­lion in Septem­ber. Silver im­ports in­creased to $346.7 mil­lion in Oc­to­ber com­pared with $317.95 mil­lion in Septem­ber and $181.93 bil­lion, up 90.62 per cent same month a year ago. Mean­while, petroleum prod­ucts dropped to $3.19 bil­lion Oc­to­ber against $3.6 in Septem­ber.

Gems and jew­ellery ex­ports fell to $3.31 bil­lion in Oc­to­ber from $4.78 bil­lion in Septem­ber

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.