Exports decline 10.3% in July 2015

Trade deficit at US$ 12.8 billion in July 2015

India's merchandise exports continued to decline for eighth straight month at 10.3% to US$ 23.14 billion in July 2015 over a year ago. Meanwhile, merchandise imports also declined 10.3% to US$ 35.95 billion. The trade deficit narrowed 10.2% to US$ 12.81 billion in July 2015 from US$ 14.28 billion in July 2014.

Oil imports plunged 34.9% to US$ 9.49 billion, while non-oil imports increased 3.8%, after two months of decline, to US$ 26.46 billion in July 2015 over July 2014. The share of oil imports in total imports was 26.4% in July 2015, showing sharp decline from 36.4% in July 2014. India's basket of crude oil plunged 46.5% to US$ 56.9 per barrel in July 2015 over July 2014.

Among the non-oil imports, the major contributors to the overall decline in imports were pearls and precious stones 35% to US$ 9.49 billion, coal 30% to US$ 1.03 billion, metaliferrous ores 35% to US$ 0.63 billion, artificial resins 10% to US$ 1 billion, organic & inorganic chemicals 6% to US$ 1.73 billion, transport equipment 5% to US$ 1.13 billion and vegetable oils 6% to US$ 0.92 billion. On the other hand, the imports have increased for gold 62% to US$ 2.97 billion, fertilizers 60% to US$ 0.91 billion, electronic goods 8% to US$ 3.52 billion, machinery 8% to US$ 2.41 billion, pulses 64% to US$ 0.37 billion, iron and steel 4% to US$ 1.35 billion and pharmaceutical products 6% to US$ 0.51 billion in July 2015.

On exports front, the exports dipped sharply for petroleum products by 43% to US$ 3.03 billion, chemicals 6% to US$ 1.21 billion, leather products 10% to US$ 0.52 billion, rice 12% to US$ 0.5 billion and electronic goods 9% to US$ 0.5 billion. However, the exports improved for gems & jewellery 5% to US$ 3.04 billion, engineering goods 1% to US$ 5.82 billion, readymade garment 7% to US$ 1.55 billion, drug and pharmaceuticals 11% to US$ 1.47 billion, and plastic and linoleum 4% to US$ 0.54 billion in July 2015.

Merchandise exports in rupees declined 5% to Rs 147234 crore, while imports fell 4.9% to Rs 228766 crore in July 2015 over July 2014. The trade deficit narrowed slightly to Rs 81532 crore in July 2015 compared with Rs 85736 crore in July 2014.

India's merchandise exports dipped 15% to US$ 89.83 billion, while merchandise imports fell 12% to US$ 134.87 billion in April-July 2015. The decline in imports was driven by a 37.9% plunge in oil imports to US$ 34.15 billion. India's merchandise trade deficit declined to US$ 45.04 billion in April-July 2015 from US$ 47.55 billion in April-July 2014.

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