Ex­ports en­ter neg­a­tive zone in Oct; trade deficit wi­dens

The Hitavada - - BUSINESS -

EX­PORTS en­tered the neg­a­tive ter­rain after over an year, con­tract­ing 1.12 per cent in Oc­to­ber pri­mar­ily due to liq­uid­ity prob­lem be­ing faced by ex­porters fol­low­ing roll­out of the Goods and Ser­vices Tax.

The trade deficit widened to an al­most three-year high of USD 14 bil­lion dur­ing the last month as against USD 11.13 bil­lion in Oc­to­ber 2016 as im­ports surged.

The ex­ports dipped to USD 23.09 bil­lion in Oc­to­ber from USD 23.36 bil­lion in the same month last year. Last time it was in Au­gust 2016 when the ship­ments were in the red.

Over­seas ship­ments of sev­eral key sec­tors such as tex­tiles, phar­ma­ceu­ti­cals, leather and gems and jew­ellery recorded neg­a­tive growth last month.

Im­ports, how­ever, grew by 7.6 per cent to USD 37.11 bil­lion in Oc­to­ber from USD 34.5 bil­lion in the year-ago month, the Com­merce Min­istry data re­leased to­day showed.

Gold im­ports dipped by 16 per cent to US dol­lar 2.94 bil­lion last month. Oil and non-oil im­ports grew by 27.89 per cent and 2.19 per cent to USD 9.28 bil­lion and USD 27.83 bil­lion, re­spec­tively in Oc­to­ber.

Cu­mu­la­tive ex­ports dur­ing April-Oc­to­ber 2017-18 in­creased by 9.62 per cent to USD 170.28 bil­lion, while im­ports grew by 22.21 per cent to USD 256.43 bil­lion, leav­ing a trade deficit of USD 86.14 bil­lion.

In Oc­to­ber, pe­tro­leum, en­gi­neer­ing and chem­i­cals ex­ports grew by 14.74 per cent, 11.77 per cent and 22.29 per cent, re­spec­tively. In­dia’s ex­port had soared by 25.67 per cent to USD 28.61 bil­lion in Septem­ber, log­ging its high­est growth in the last six months on the back of ex­pan­sion in ship­ments of chem­i­cals, pe­tro­leum and en­gi­neer­ing prod­ucts.

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