India's merchandise exports decline 6.6% in September 2019

Trade deficit narrows to seven month low of US$ 10.86 billion in September 2019

India's merchandise exports declined for second straight month at 6.6% to US$ 26.03 billion in September 2019 over a year ago. Meanwhile, merchandise imports also dipped 13.8% to US$ 36.89 billion. The trade deficit narrowed 27.4% to seven month low of US$ 10.86 billion in September 2019 from US$ 14.95 billion in September 2018.

Oil imports declined 18.3% to US$ 8.98 billion, while the non-oil imports dipped 12.3% to US$ 27.91 billion in September 2019 over September 2018. The share of oil imports in total imports was 24.3% in September 2019, compared with 25.7% in September 2018.

Among the non-oil imports, the major contributors to the overall dip in imports were gold imports declining 50.8% to US$ 1.28 billion, transport equipment 51.0% to US$ 0.93 billion, coal, coke & briquettes etc 24.0% to US$ 1.56 billion, pearls, precious & semi-precious stones 17.3% to US$ 2.19 billion and organic & inorganic chemicals 16.2% to US$ 1.64 billion, while imports of non-ferrous metals also declined 24.2% to US$ 0.95 billion, iron & steel 14.6% to US$ 1.23 billion, vegetable oil 21.0% to US$ 0.73 billion and metaliferrous ores & other minerals 26.0% to US$ 0.41 billion.

Further, the imports of artificial resins, plastic materials etc declined 10.7% to US$ 1.18 billion, wood & wood products 8.4% to US$ 0.48 billion, chemical material & products 3.5% to US$ 0.63 billion, electronic goods 0.1% to US$ 5.68 billion and professional instrument, optical goods etc 1.7% to US$ 0.43 billion.

However, the imports have increased for machinery, electrical & non-electrical by 19.4% to US$ 3.55 billion, crude & manufactured fertilizers 102.7% to US$ 1.01 billion and medicinal & pharmaceutical products 3.5% to US$ 0.50 billion in September 2019.

On exports front, the petroleum products recorded a decline in exports by 18.6% to US$ 3.44 billion, followed by engineering goods 6.2% to US$ 6.55 billion, gems & jewellery 5.6% to US$ 3.59 billion, cotton yarn/fabrics/made-ups, handloom products etc. 15.3% to US$ 0.81 billion, plastic & linoleum 17.8% to US$ 0.60 billion, meat, dairy & poultry products 23.5% to US$ 0.33 billion, and marine products 10.1% to US$ 0.64 billion.

The exports also declined for organic & inorganic chemicals by 3.5% to US$ 1.85 billion, rice 15.1% to US$ 0.37 billion, leather & leather products 10.5% to US$ 0.37 billion, man-made yarn/fabrics/made-ups etc. 8.8% to US$ 0.39 billion, rmg of all textiles 2.2% to US$ 1.08 billion, and handicrafts excluding handmade carpet 2.9% to US$ 0.15 billion.

However, the exports moved up for electronic goods by 33.1% to US$ 0.93 billion, drugs & pharmaceuticals 8.7% to US$ 1.80 billion and spices 28.4% to US$ 0.33 billion in September 2019.

Further, the exports of mica, coal & other ores, minerals including processed minerals also improved 16.7% to US$ 0.39 billion, ceramic products & glassware 11.1% to US$ 0.23 billion, and fruits & vegetables 1.9% to US$ 0.19 billion in September 2019.

Merchandise exports in rupees declined 7.7% to Rs 185711 crore, while imports dipped 14.9% to Rs 263158 crore in September 2019 over September 2018. The trade deficit eased to Rs 77447 crore in September 2019 compared with Rs 107988 crore in September 2018.

India's merchandise exports fell 2.6% to US$ 159.57 billion, while merchandise imports declined 6.6% to US$ 243.28 billion in April-September 2019. The decline in imports was driven by a 8.0% fall in oil imports to US$ 64.30 billion. India's merchandise trade deficit eased to US$ 83.70 billion in April-September 2019 from US$ 96.45 billion in April-September 2018.

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