October Exports decline 1.1% year on year to $26.38 billion- Trade Deficit Narrows as Imports Fall Fastest in Over 3 Yrs.

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India’s exports shrank at a slower pace in October, with shipping of key segments of petroleum products, leather and carpet declining, even as a steeper contraction in imports helped narrow the country’s trade deficit from the year-ago period.

Exports declined 1.1% year on year to $26.38 billion last month while imports shrank 16.3% to $37.39 billion, official data released by commerce and industry ministry showed on Friday. Such steep contraction in imports was last seen in July 2016 when they declined 19%.

The country’s trade deficit narrowed to $11.01 billion in October against $18 billion a year earlier.

“Negative exports for October have not come as a surprise, amidst global slowdown, particularly in the main destinations of Indian exports,” Engineering Export Promotion Council of India chairman Ravi Sehgal said. “However, the pace of degrowth for October has come down, month on month.”

Exports had contracted 6.5% in September. Exports of electronic goods, drugs & pharmaceuticals, gems & jewellery, engineering goods and chemicals increased in October.

MohitSingla, chairman at Trade Promotion Council of India, said the slide in exports was reflective of a global slowdown that led to slackening of demand. It also showed in the fall in imports of raw material used for production or manufacturing, he said.

Oil imports fell 31.74% on year to $9.63 billion in October while gold imports increased 4.74% to $1.83 billion.

Non-oil, non-gold imports, an indicator of domestic demand, fell 10%, driven by a decline in demand for industrial inputs such as iron and steel, coal, minerals & ores, metals, transport equipment, electronic goods, silver, and precious & semiprecious stones.

Exports in the April-October period shrank 2.21% to $185.95 billion while imports were down 8.37% to $280.67 billion, leaving a trade deficit of $94.72 billion. Federation of Indian Export Organisations (FIEO) attributed the decline in exports to trade tensions, rising protectionism and base effect as exports grew 17.8% in October 2018.

“Sluggishness in the economies across the globe, coupled with trade war between US and China, Brexit, and developments in Iran, Turkey, Iraq and other Gulf countries that have continuously unsettled the slowing world economy have further escalated the problem,” said FIEO president Sharad Kumar Saraf.

India’s exports shrank at a slower pace in October, with shipping of key segments of petroleum products, leather and carpet declining, even as a steeper contraction in imports helped narrow the country’s trade deficit from the year-ago period.

Exports declined 1.1% year on year to $26.38 billion last month while imports shrank 16.3% to $37.39 billion, official data released by commerce and industry ministry showed on Friday. Such steep contraction in imports was last seen in July 2016 when they declined 19%.

The country’s trade deficit narrowed to $11.01 billion in October against $18 billion a year earlier.

“Negative exports for October have not come as a surprise, amidst global slowdown, particularly in the main destinations of Indian exports,” Engineering Export Promotion Council of India chairman Ravi Sehgal said. “However, the pace of degrowth for October has come down, month on month.”

Exports had contracted 6.5% in September. Exports of electronic goods, drugs & pharmaceuticals, gems & jewellery, engineering goods and chemicals increased in October.

MohitSingla, chairman at Trade Promotion Council of India, said the slide in exports was reflective of a global slowdown that led to slackening of demand. It also showed in the fall in imports of raw material used for production or manufacturing, he said.

Oil imports fell 31.74% on year to $9.63 billion in October while gold imports increased 4.74% to $1.83 billion.

Non-oil, non-gold imports, an indicator of domestic demand, fell 10%, driven by a decline in demand for industrial inputs such as iron and steel, coal, minerals & ores, metals, transport equipment, electronic goods, silver, and precious & semiprecious stones.

Exports in the April-October period shrank 2.21% to $185.95 billion while imports were down 8.37% to $280.67 billion, leaving a trade deficit of $94.72 billion. Federation of Indian Export Organisations (FIEO) attributed the decline in exports to trade tensions, rising protectionism and base effect as exports grew 17.8% in October 2018.

“Sluggishness in the economies across the globe, coupled with trade war between US and China, Brexit, and developments in Iran, Turkey, Iraq and other Gulf countries that have continuously unsettled the slowing world economy have further escalated the problem,” said FIEO president Sharad Kumar Saraf.