India's merchandise export growth slows in August 2014

Lower crude oil prices helped oil imports to dip 15% to US$ 12.839 billion in August 2014

India's merchandise export increased at five-month low pace of 2.4% to US$ 26.958 billion in August 2014. Meanwhile, the merchandise imports also rose at moderate pace of 2.1% to US$ 37.797 billion in August 2014. However, the trade deficit narrowed to US$ 10.839 billion in August 2014 from one -year high of US$ 12.23 billion in the previous month.

The growth in merchandise imports was supported by 13.8% surge in non-oil imports to US$ 24.958 billion, which posted 16-months high growth in August 2014. However, the lower crude oil prices helped oil imports to dip 15% to US$ 12.839 billion in August 2014. The oil import share in total imports stood lowest in last 13-months at 34% in August 2014. India's basket of crude oil slipped 6.1% to US$ 101.89 per barrel in August 2014 over August 2013.

Merchandise exports in rupee terms declined 1.4% to Rs 164162.61 crore, while imports also fell 1.7% to Rs 230164.5 crore in August 2014 over August 2013. The decline in exports and import from year earlier level was contributed by 3.7% appreciation of Indian Rupee in August 2014 over August 2013. The trade deficit eased to Rs 66002 crore in August 2014 compared with Rs 67558 crore in August 2013.

India's merchandise export increased 7.3% to US$ 134.798 billion in April-August 2014, while merchandise imports fell 2.7% to US$ 190.949 billion. The decline in imports was driven by 5% fall in non-oil imports to US$ 122.97 billion in April-August 2014. India's merchandise trade deficit narrowed to US$ 56.151 billion in April-August 2014 from US$ 70.602 billion in April-August 2014. Trade deficit as a percentage of GDP was lower at 2.6% in April-August 2014 compared to 3.6% in April-August 2013.

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