India's export growth slid to a four-month low of 0.64 per cent in April as shipments of engineering goods, gems and jewellery, leather and other products declined, widening the trade deficit to a five-month high, official data released Wednesday showed.
Imports increased by 4.5 per cent, the highest growth in the last six months as crude oil and gold shipments shot up in the month.
Merchandise exports stood at USD 26 billion in April while imports at USD 41.4 billion, leading to a trade gap of USD 15.33 billion, the widest deficit since November 2018, the trade data showed.
The country's merchandise exports were down because of the negative growth in key sectors such as engineering, gems and jewellery, leather, carpet, plastic, marine products, rice and coffee during the month under review. Previously, exports had recorded a low growth rate of 0.34 per cent in December 2018.
Gold imports rose by 54 per cent to USD 3.97 billion in April.
Certain exports sectors which recorded positive growth include petroleum, handicrafts, ready-made garments, and pharmaceuticals.
"However we sustained the positive momentum. Additionally, a pleasant pattern has been observed in tea, spices, fruits and vegetables which a great sign of exports supporting agri- produce," TPCI Chairman Mohit Singla said in a statement.
"These sectors are still facing the problem of liquidity besides various other challenges including the global trade war, protectionism, fragile global conditions and constraints on the domestic front," he said.
Gupta also expressed concerns on the rising trade deficit primarily on account of swelling crude import bill with the further northward movement of prices and ban on Iranian imports along with rising gold import.
He added that with rising trade tensions between the US and China, the global trade scenario may further worsen, putting more pressure on Indian exports in months to come.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)