India's merchandise exports rises 1.3% in June 2016 after 18-months of decline

Imports continues to decline at 7.3% in June 2016

India's merchandise exports rose 1.3% to US$ 22.57 billion in June 2016 over a year ago, while snapping continuous decline for last eighteen straight months. Meanwhile, merchandise imports continued to decline at 7.3% to US$ 30.69 billion. The trade deficit narrowed 25.0% to US$ 8.12 billion in June 2016 from US$ 10.83 billion in June 2015.

Oil imports plunged 16.4% to US$ 7.25 billion, while non-oil imports also declined 4.1% to US$ 23.44 billion in June 2016 over June 2015. The share of oil imports in total imports was 23.6% in June 2016. The Brent crude oil price plunged 21.6% to US$ 49.96 per barrel in June 2016 over June 2015.

Among the non-oil imports, the major contributors to the overall decline in imports were petroleum products imports declining 16.4% to US$ 7.25 billion, gold 38.5% to US$ 1.21 billion, pearls & semi-precious stones 13.5% to US$ 1.79 billion, fertilizers 22.8% to US$ 0.71 billion, iron & steel 16.7% to US$ 1.03 billion, metaliferrous ores & other minerals 27.2% to US$ 0.46 billion, coal 13.0% to US$ 1.07 billion, project goods 53.0% to US$ 0.09 billion, silver 27.2% to US$ 0.25 billion, organic & inorganic chemicals 4.1% to US$ 1.51 billion and fruits & vegetables 19.7% to US$ 0.15 billion.

On the other hand, the imports have increased for electronic goods by 9.5% to US$ 3.44 billion, electrical & non-electrical machinery 1.8% to US$ 2.30 billion, transport equipment 11.0% to US$ 1.30 billion, artificial resins, plastic materials etc. 1.6% to US$ 1.05 billion, non-ferrous metals 9.9% to US$ 0.94 billion, vegetable oil 5.5% to US$ 0.82 billion and chemical material & products 11.8% to US$ 0.48 billion in June 2016.

On exports front, the engineering goods recorded an increase in exports by 0.9% to US$ 5.14 billion, followed by drugs & pharmaceuticals 0.1% to US$ 1.41 billion, organic & inorganic chemicals 14.4% to US$ 1.21 billion, rice 8.6% to US$ 0.60 billion, plastic & linoleum 10.6% to US$ 0.54 billion, electronic goods 9.9% to US$ 0.52 billion, marine products 43.2% to US$ 0.47 billion, and handicrafts excluding handmade carpet 92.0% to US$ 0.25 billion.

However, the exports declined for gems & jewellery by 0.5% to US$ 3.51 billion, petroleum products 10.8% to US$ 2.57 billion, readymade garment of all textiles 0.8% to US$ 1.57 billion, cotton yarn/fabrics/made-ups 2.3% to US$ 0.81 billion, leather & leather products 3.8% to US$ 0.50 billion, man-made yarn/fabrics/made-ups 10.5% to US$ 0.37 billion, in June 2016.

Merchandise exports in Rupees increased 6.7% to Rs 151905 crore, while imports declined 2.3% to Rs 206524 crore in June 2016 over June 2015. The trade deficit narrowed to Rs 54620 crore in June 2016 compared with Rs 69143 crore in June 2015.

India's merchandise exports declined 2.1% to US$ 65.31 billion, while merchandise imports fell 14.5% to US$ 84.55 billion in April-June 2016. The decline in imports was driven by a 23.6% dip in oil imports to US$ 18.85 billion. India's merchandise trade deficit declined to US$ 19.23 billion in April-June 2016 from US$ 32.23 billion in April-June 2015.

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