August exports shrink 12.6%, trade deficit hits 4-month high of $6.77 bn

Import contraction restricted to 26 per cent in August due to surge in gold purchases from abroad

After reducing for three months, the pace of contraction of India’s exports rose in August. Export earnings in the month declined by 12.6 per cent year on year, higher than July's 10.2 per cent fall, as trade in major foreign exchange earners such as petroleum, gems, electronics, and textiles continued to take a hit. Outbound trade stood at $22.7 billion, completing six straight months of contraction. 

Earlier, the government had been hoping to reach a single-digit contraction by August, with a tentative growth forecast for September. 

The data for August, released by the commerce department on Tuesday, shows cumulative exports in the