Merchandise exports continued to say no for the sixth straight month in August. Whereas exports had been down 12.6 per cent, imports fell by 26 per cent y-o-y. On a sequential foundation, the commerce deficit additional widened in August, making the excess in June a one-off occasion.
Within the month of August, merchandise exports stood at $22.70 billion as in comparison with $25.99 billion in August 2019, exhibiting a destructive progress of 12.66 per cent. In rupee phrases, the destructive progress was 8.33 per cent.
Gems and jewelry, petroleum merchandise, man-made yarn, materials and made-ups, marine merchandise and leather-based and leather-based merchandise continued to see decline in shipments. The expansion in shipments of rice, different cereals, iron ore, oil meals, oil seeds and medicines and prescription drugs didn’t assist a lot in decreasing the general decline in exports.
Cumulative exports of $97.66 billion between April and August was 26.65 per cent down in comparison with $133.14 billion in the identical interval final yr.
Imports stood at $29.47 billion, down by 26.04 per cent towards $39.85 billion in August 2019. Crude and petroleum merchandise, electrical and non-electrical equipment, coal and natural and inorganic chemical substances continued to see decline in imports on a y-o-y foundation. Nonetheless, gold imports, as per experiences, doubled in August towards the identical month final yr.
Cumulative imports for the interval April-August was $118.38 billion as towards $210.39 billion throughout the identical interval final yr, registering a destructive progress of 43.73 per cent.
Whereas the commerce deficit for August at $6.77 billion narrowed towards the deficit of $13.86 billion in August 2019, on a sequential foundation the deficit widened. Commerce deficit was $4.83 billion in July and the nation had witnessed a uncommon surplus of $790 million in June.
This had been a one-off occasion as a result of contraction in each exports and imports. As soon as the crude oil and gold imports began recovering, the commerce as soon as once more moved into deficit.