Trade deficit narrows to seven month low of US$ 8.98 billion in September 2017

India's merchandise exports jumped at six-month high pace of 25.7% to US$ 28.61 billion in September 2017 over a year ago. Meanwhile, merchandise imports increased 18.1% to US$ 37.60 billion. The trade deficit declined 1.0% to seven-month low of US$ 8.98 billion in September 2017 from US$ 9.07 billion in September 2016.

Oil imports moved up 18.5% to US$ 8.19 billion, while the non-oil imports also surged 18.0% to US$ 29.41 billion in September 2017 over September 2016. The share of oil imports in total imports was 21.8% in September 2017, compared with 21.7% in September 2016. India's basket of crude oil galloped 22.6% to US$ 54.52 per barrel in September 2017 over September 2016.

Among the non-oil imports, the major contributors to the overall rise in imports were electronic goods imports rising 40.9% to US$ 5.17 billion, pearls, precious & semi-precious stones 56.9% to US$ 3.13 billion, coal, coke & briquettes, etc. 48.0% to US$ 1.64 billion, machinery, electrical & non-electrical 16.4% to US$ 2.85 billion, iron & steel 35.0% to US$ 1.30 billion, non-ferrous metals 32.5% to US$ 1.11 billion and organic & inorganic chemicals 20.3% to US$ 1.55 billion. The imports also improved for artificial resins, plastic materials etc by 21.9% to US$ 1.24 billion, metaliferrous ores & other minerals 41.4% to US$ 0.72 billion, silver 128.3% to US$ 0.32 billion, wood & wood products 34.0% to US$ 0.57 billion and vegetable oil 11.6% to US$ 1.16 billion.

Further, the imports have moved up for chemical material & products 26.4% to US$ 0.54 billion, and professional instrument, optical goods etc 18.8% to US$ 0.38 billion, while it declined for transport equipment 27.6% to US$ 1.31 billion, cotton raw & waste 43.7% to US$ 0.14 billion and gold 5.0% to US$ 1.71 billion in September 2017.

On exports front, the engineering goods recorded an increase in exports by 44.2% to US$ 7.33 billion, followed by petroleum products 39.7% to US$ 3.60 billion, organic & inorganic chemicals 46.1% to US$ 1.68 billion, readymade garment of all textiles 29.4% to US$ 1.66 billion, gems & jewellery 7.1% to US$ 4.78 billion, and drugs & pharmaceuticals 14.7% to US$ 1.60 billion. The exports also moved up for marine products by 32.7% to US$ 0.79 billion, rice 45.7% to US$ 0.58 billion and cotton yarn/fabrics/made-ups, handloom products etc 15.2% to US$ 0.92 billion in September 2017. Further, the exports gained for man-made yarn/fabrics/made-ups etc by 24.8% to US$ 0.47 billion, plastic & linoleum 17.1% to US$ 0.57 billion, electronic goods 14.3% to US$ 0.57 billion and leather & leather products 17.1% to US$ 0.48 billion in September 2017.

Merchandise exports in rupees improved 21.3% to Rs 184387 crore, while imports moved up 14.0% to Rs 242283 crore in September 2017 over September 2016. The trade deficit narrowed to Rs 57896 crore in September 2017 compared with Rs 60536 crore in September 2016.

India's merchandise exports increased 12.0% to US$ 147.19 billion, while merchandise imports surged 25.2% to US$ 219.32 billion in April-September 2017. An increase in imports was driven by a 19.3% jump in oil imports to US$ 46.97 billion. India's merchandise trade deficit galloped to US$ 72.13 billion in April-September 2017 from US$ 43.77 billion in April-September 2016.

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