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Trade deficit narrows 51.1% to US$ 6.77 billion in August 2020

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India's merchandise exports dipped 12.7% to US$ 22.70 billion in August 2020 over a year ago. Meanwhile, merchandise imports also declined 26.0% to US$ 29.47 billion. The trade deficit fell 51.1% to US$ 6.77 billion in August 2020 from US$ 13.45 billion in August 2019.

Oil imports declined 41.6% to US$ 6.42 billion, while the non-oil imports dipped 20.1% to US$ 23.05 billion in August 2020 over August 2019. The share of oil imports in total imports was 21.8% in August 2020, compared with 27.5% in August 2019.

The price of India's basket of crude oil skidded 25.5% to US$ 44.19 per barrel in August 2020 over August 2019.

Among the non-oil imports, the major contributors to the overall dip in imports were machinery, electrical & non-electrical imports declining 41.6% to US$ 2.02 billion, iron & steel 62.1% to US$ 0.64 billion, coal, coke & briquettes etc 37.8% to US$ 1.08 billion, transport equipment 51.4% to US$ 0.60 billion and electronic goods 11.7% to US$ 4.72 billion, while imports of non-ferrous metals also slipped 45.4% to US$ 0.66 billion, artificial resins, plastic materials etc 33.9% to US$ 0.85 billion, pearls, precious & semi-precious stones 23.7% to US$ 1.16 billion and organic & inorganic chemicals 18.4% to US$ 1.47 billion.

Further, the imports of wood & wood products declined 55.4% to US$ 0.23 billion, machine tools 36.3% to US$ 0.23 billion, chemical material & products 8.7% to US$ 0.63 billion and vegetable oil 6.1% to US$ 0.88 billion and professional instrument, optical goods etc 9.6% to US$ 0.36 billion.

However, the imports of gold moved up 171.3% to US$ 3.70 billion, fertilisers, crude & manufactured 43.7% to US$ 0.79 billion and medicinal & pharmaceutical products 8.6% to US$ 0.59 billion in August 2020.

On exports front, the gems & jewellery recorded a dip in exports by 43.3% to US$ 1.82 billion, followed by petroleum products 39.9% to US$ 1.93 billion, engineering goods 7.7% to US$ 6.04 billion, and RMG of all textiles 14.0% to US$ 1.08 billion.

The exports also declined for electronic goods by 13.8% to US$ 0.87 billion, marine products 23.0% to US$ 0.46 billion and man-made yarn/fabrics/made-ups etc 24.2% to US$ 0.30 billion. Further, the exports declined for organic & inorganic chemicals by 4.7% to US$ 1.65 billion, leather & leather products 16.8% to US$ 0.36 billion, mica, coal & other ores, minerals including processed minerals 16.6% to US$ 0.30 billion, spices 8.0% to US$ 0.31 billion, ceramic products & glassware 4.6% to US$ 0.25 billion and cotton yarn/fabrics/made-ups, handloom products etc 0.4% to US$ 0.83 billion in August 2020.

However, exports for drugs & pharmaceuticals moved up 17.3% to US$ 1.98 billion, rice 59.1% to US$ 0.66 billion, iron ore 46.0% to US$ 0.41 billion, meat, dairy & poultry products 10.7% to US$ 0.32 billion, fruits & vegetables 15.0% to US$ 0.20 billion, and plastic & linoleum 0.6% to US$ 0.65 billion in August 2020.

Merchandise exports in rupees declined 8.3% to Rs 169514 crore, while imports dipped declined 22.4% to Rs 220084 crore in August 2020 over August 2019. The trade deficit eased to Rs 50570 crore in August 2020 compared with Rs 95725 crore in August 2019.

India's merchandise exports fell 26.8% to US$ 97.66 billion, while merchandise imports declined 42.7% to US$ 118.38 billion in April-August 2020. The decline in imports was driven by a 53.1% fall in oil imports to US$ 26.03 billion. India's merchandise trade deficit eased to US$ 20.72 billion in April-August 2020 from US$ 72.85 billion in April-August 2019.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, September 16 2020. 16:49 IST