India's merchandise exports declines 6.0% in August 2019

Trade deficit narrows to US$ 13.45 billion in August 219

India's merchandise exports declined 6.0% to US$ 26.13 billion in August 2019 over a year ago. Meanwhile, merchandise imports dipped 13.4% to US$ 39.58 billion. The trade deficit narrowed 24.9% to US$ 13.45 billion in August 2019 from US$ 17.39 billion in August 2018.

Oil imports declined 8.9% to US$ 10.88 billion, while the non-oil imports also dipped 15.1% to US$ 28.71 billion in August 2019 over August 2018. The share of oil imports in total imports was 27.5% in August 2019, compared with 26.2% in August 2018. The price of India's basket of crude oil plunged 18.2% to US$ 59.35 per barrel in August 2019 over August 2018.

Among the non-oil imports, the major contributors to the overall dip in imports were gold imports declining 62.5% to US$ 1.36 billion, transport equipment 44.5% to US$ 1.08 billion, coal, coke & briquettes etc 23.8% to US$ 1.74 billion, pearls, precious & semi-precious stones 20.5% to US$ 1.52 billion and electrical & non-electrical machinery 8.8% to US$ 3.47 billion, while imports of organic & inorganic chemicals also declined 15.0% to US$ 1.81 billion, electronic goods 4.1% to US$ 5.35 billion, metaliferrous ores & other minerals 35.7% to US$ 0.37 billion and non-ferrous metals 10.6% to US$ 1.21 billion.

Further, the imports of artificial resins, plastic materials etc declined 7.8% to US$ 1.28 billion, vegetable oil 7.5% to US$ 0.94 billion, professional instrument, optical goods, etc. 9.9% to US$ 0.41 billion and wood & wood products 1.1% to US$ 0.52 billion.

However, the imports have increased for medicinal & pharmaceutical products by 1.1% to US$ 0.55 billion, chemical material & products 6.3% to US$ 0.69 billion, crude & manufactured fertilizers 11.7% to US$ 0.55 billion and iron & steel 9.8% to US$ 1.69 billion in august 2019.

On exports front, the engineering goods recorded a decline in exports by 9.4% to US$ 6.55 billion, followed by petroleum products 10.7% to US$ 3.32 billion, cotton yarn/fabrics/made-ups, handloom products etc 22.4% to US$ 0.83 billion, organic & inorganic chemicals 9.2% to US$ 1.81 billion, plastic & linoleum 16.9% to US$ 0.65 billion, rice 23.9% to US$ 0.42 billion and gems & jewellery 3.5% to US$ 3.21 billion.

The exports also declined for meat, dairy & poultry products by 28.0% to US$ 0.29 billion, man-made yarn/fabrics/made-ups etc 13.6% to US$ 0.40 billion, leather & leather products 10.9% to US$ 0.43 billion, rmg of all textiles 2.4% to US$ 1.26 billion, fruits & vegetables 12.6% to US$ 0.17 billion, and drugs & pharmaceuticals 0.2% to US$ 1.68 billion.

However, the exports moved up for electronic goods by 45.9% to US$ 1.02 billion, iron ore 356.7% to US$ 0.28 billion and spices 35.4% to US$ 0.33 billion in august 2019. Further, the exports of marine products also increased 5.3% to US$ 0.59 billion, ceramic products & glassware 12.6% to US$ 0.26 billion, and mica, coal & other ores, minerals including processed minerals 2.2% to US$ 0.36 billion in august 2019.

Merchandise exports in rupees declined 3.9% to Rs 185881 crore, while imports dipped 11.5% to Rs 281606 crore in August 2019 over August 2018. The trade deficit eased to Rs 95725 crore in August 2019 compared with Rs 120973 crore in August 2018.

India's merchandise exports fell 1.8% to US$ 133.54 billion, while merchandise imports declined 5.1% to US$ 206.39 billion in April-August 2019. The decline in imports was driven by a 6.1% fall in oil imports to US$ 55.33 billion. India's merchandise trade deficit eased to US$ 72.85 billion in April-August 2019 from US$ 80.35 billion in April-August 2018.

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