Exports Rise 5.27% in September, Trade Deficit Narrows to $2.91 Billion

India’s exports rose, led by growth in outbound shipments of cereals, carpets, rice, oil and iron ore, after a six-month break in September. Exports rose 5.27 percent year-on-year to $27.4 billion in September, while imports dropped 19.6 percent, leaving a $2.91 billion trade deficit, preliminary data released by the Ministry of Trade and Industry showed. In September 2019, the trade deficit narrowed from $11.67 billion.

Exports stood at $26.02 billion in September 2019. Last month, gold imports shrank 52.85 percent.

India is indeed a net importer in September 2020 … showing a major 75.06 percent change, “the ministry said in a statement.”

Last month, non-oil, non-gold imports, an indication of the strength of domestic demand, decreased by 13.29 percent year on year.

Ms Aditi Nayar, principal economist at ICRA said, “The y-o-y growth in merchandise exports in September 2020 is heartening, after the faltering trend seen in the previous month. Regardless, the sharp gap in non-oil non-gold merchandise imports remains a cause for concern regarding the strength of domestic demand”.

In the duration between April and September, exports fell 21.43 percent to $125.06 billion, while imports fell 40.06 percent to $148.69 billion.

Just eight out of the 31 major export sectors declined last month, according to the report.

Iron ore (109.52 percent), rice (92.44 percent), oil meals (43.9 percent), carpet (42.89 percent) and pharmaceuticals (24.36 percent) are commodities that reported positive export growth in September.

The largest rise in export growth was seen by medicines and pharmaceuticals, rice and engineering goods, while gems and jewellery, man-made yarn / fabric / made ups and marine items saw rapid declines in outbound shipments.

The ministry said oil imports dropped 35.92 percent to $5.82 billion in September, while non-oil imports decreased 14.41 percent to $24.48 billion.

Silver (-93.92 percent), cotton raw and waste (-82.02 percent), newsprint (-62.44 percent), gold (-52.85 percent) and transport equipment (47.08 percent) were the major commodity groups of imports that showed a decline in growth in September.

Source:IBEF