India’s trade deficit narrows in Aug
According to the government data released on Tuesday, India’s exports slipped 12.66% year-on-year to US$ 22.7 billion in August, while imports declined 26% to US$ 29.47 billion, leaving a trade deficit of US$ 6.77 billion. This stood against a shortfall of US$ 4.83 billion last month and US$ 13.86 billion in the same month last year.
The decline in exports last month was higher as compared to 10.21% in July and 12.41% in June. Meanwhile, exports stood at US$ 25.99 billion in August 2019. This dip in exports was on account of fall in the shipments of petroleum products (-40%), gems and jewellery (-43.28%), leather (-16.82%), man-made yarn/fabs/made-ups (-24.23%), ready-made garments of all textiles (-14%), and engineering (-7.69%).
Meanwhile major commodity groups of import showing negative growth in August 2020 over the corresponding month of last year are machinery, electrical and non-electrical (-41.58%); coal (-37.83%); chemicals (- 18.36%); wood and electronic goods (-11.67%). Oil imports declined by 41.62% to $6.42 billion; while gold imports jumped to $3.7 billion in August as against $1.36 billion in the same month last year. In August 2019, India’s imports were US$ 39.85 billion.