Exports Up 10.3% in August, Trade Deficit Widens
New Delhi: India’s exports rebounded in August after slowing down in July, helped by a recovery in global demand. The country’s exports grew 10.3% to $23.8 billion last month. Imports outpaced exports and increased 21% to $35.46 billion, widening the trade deficit to $11.6 billion from $7.7 billion a year earlier. Growth in outbound shipments slowed to an eight-month low in July, weighed down by appreciation in the rupee and disruptions on account of the introduction of the goods and services tax regime.
Exports of engineering goods grew 19.53%, petroleum products increased 36.56%, drugs and pharmaceuticals rose 4.21% and readymade garments grew 0.56%, according to data released by the commerce and industry ministry on Friday. “In continuation with the positive growth exhibited by exports for the last 12 months, exports during August 2017 have shown growth,” the ministry said in a statement.
“A pickup in exports during August augurs well for Indian exporters who seem to be benefiting from a recovery in major global markets, including the key economies of the US and Europe,” said
TS Bhasin, Chairman of EEPC India. Oil imports grew 14.22% to $7.75 billion in August.
Cumulative exports during AprilAugust rose 8.57% to $118.57 billion, while imports increased 26.6% to $181.71 billion, leaving a trade deficit of $63.14 billion in the first five months of the financial year.