Exports growth accelerates to 9.6% in October 2016

Imports rise after 22-months of fall

India's merchandise exports increased at a 28-months high pace of 9.6% to US$ 23.51 billion in October 2016 over a year ago. Meanwhile, merchandise imports moved up 8.1% to US$ 33.67 billion, while snapping consistent decline for last 22-months. The trade deficit rose 4.8% to US$ 10.16 billion in October 2016 from US$ 9.77 billion in October 2015.

Oil imports rose 4.0% to US$ 7.14 billion, while the non-oil imports gained 9.3% to US$ 26.53 billion in October 2016 over October 2015. The share of oil imports in total imports was 21.2% in October 2016, compared with 22.0% in October 2015. India's basket of crude oil increased 5.5% to US$ 49.25 per barrel in October 2016 over October 2015.

Among the non-oil imports, the major contributors to the overall rise in imports were gold imports rising 108.4% to US$ 3.50 billion, pearls, precious & semi-precious stones 20.1% to US$ 1.83 billion, petroleum, crude & products 4.0% to US$ 7.14 billion, transport equipment 15.8% to US$ 1.88 billion, machine tools 38.5% to US$ 0.29 billion, chemical products 11.7% to US$ 0.47 billion, coal, coke & briquettes 3.5% to US$ 1.16 billion and pulses 10.0% to US$ 0.34 billion. The imports also improved for professional instrument by 10.8% to US$ 0.32 billion, vegetable oil 1.7% to US$ 0.96 billion, electrical & non-electrical machinery 0.5% to US$ 2.25 billion, electronic goods 0.1% to US$ 3.76 billion and fruits & vegetables 5.1% to US$ 0.21 billion.

On the other hand, the imports have declined for iron & steel 30.7% to US$ 0.93 billion, fertilizers 33.9% to US$ 0.51 billion, metaliferrous ores & minerals 14.3% to US$ 0.51 billion, non-ferrous metals 7.9% to US$ 0.79 billion, wood & wood products 10.5% to US$ 0.41 billion, medicinal & pharmaceutical products 9.6% to US$ 0.40 billion, artificial resins and plastic materials 2.5% to US$ 1.01 billion and organic & inorganic chemicals 1.7% to US$ 1.28 billion in October 2016.

On exports front, the gems & jewellery recorded an increase in exports by 21.8% to US$ 4.38 billion, followed by engineering goods 13.9% to US$ 5.27 billion, iron ore 2835.1% to US$ 0.33 billion, petroleum products 7.2% to US$ 2.72 billion, RMG of all textiles 10.7% to US$ 1.36 billion, marine products 24.1% to US$ 0.68 billion, organic & inorganic chemicals 6.6% to US$ 1.17 billion, and meat, dairy & poultry products 11.5% to US$ 0.45 billion.

However, the exports declined for, drugs & pharmaceuticals by 1.7% to US$ 1.46 billion, cotton yarn/fabrics/made-ups, handloom products 9.0% to US$ 0.78 billion, plastic & linoleum 11.2% to US$ 0.44 billion, leather & leather products 1.7% to US$ 0.41 billion, man-made yarn/fabrics/made-ups 13.1% to US$ 0.38 billion, rice 22.7% to US$ 0.32 billion, mica, coal & other ores, minerals including processed minerals 15.9% to US$ 0.24 billion in October 2016.

Merchandise exports in rupees increased 12.4% to Rs 156942 crore, while imports moved up 10.9% to Rs 224763 crore in October 2016 over October 2015. The trade deficit widened to Rs 67821 crore in October 2016 compared with Rs 63544 crore in October 2015.

India's merchandise export was flat at US$ 154.91 billion, while merchandise imports fell 10.5% to US$ 208.08 billion in April-October 2016. The decline in imports was driven by a 15.7% plunge in oil imports to US$ 46.44 billion. India's merchandise trade deficit declined to US$ 53.17 billion in April-October 2016 from US$ 77.65 billion in April-October 2015.

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