NEW DELHI: India export of goods fell nearly 7% to $34.5 billion in August, marking the seventh consecutive month of decline amid tepid demand and lower commodity prices. Imports also fell by more than 5% to $58.6 billion, causing the trade deficit to fall to $24.1 billion in August, slightly lower than last year (see chart).
Commerce Secretary Sunil Barthwal said there were “good signs” as some green shoots were visible. “It means that the global situation is improving. The trade deficit, which has always been a concern, but the numbers (for August) look good. It is a calming factor for the economy,” he told reporters.
The government also takes comfort in the fact that export volumes of several prominent products were higher, even though the overall value had fallen. This indicates that the demand situation was not that bad and that higher commodity prices would increase the total value of shipments. In the case of petroleum products, for example, volumes were 6% higher in the April-July period, although values were down 27%, a Commerce Department analysis showed (see chart).
Barthwal blamed the slowdown in Europe and some other parts of the world on weak demand for products like textiles and gemstones and jewelery as high inflation and a rise in interest rates have reduced discretionary spending.
Ready-made garment export Interest rates are estimated to have fallen by more than 8% to $1.1 billion in August, and by about 16% to $6 billion in the April-August period. Gems and jewelry saw the second steepest decline of 22% in August, behind only petroleum products, whose exports shrank by more than 30% to $5.9 billion.
Technical goods, the largest item in India’s export basket, rose 7.7% to $9 billion – the first after eight months – while in April and August they were 4.5% lower at $44.6 billion.
Commerce Secretary Sunil Barthwal said there were “good signs” as some green shoots were visible. “It means that the global situation is improving. The trade deficit, which has always been a concern, but the numbers (for August) look good. It is a calming factor for the economy,” he told reporters.
The government also takes comfort in the fact that export volumes of several prominent products were higher, even though the overall value had fallen. This indicates that the demand situation was not that bad and that higher commodity prices would increase the total value of shipments. In the case of petroleum products, for example, volumes were 6% higher in the April-July period, although values were down 27%, a Commerce Department analysis showed (see chart).
Barthwal blamed the slowdown in Europe and some other parts of the world on weak demand for products like textiles and gemstones and jewelery as high inflation and a rise in interest rates have reduced discretionary spending.
Ready-made garment export Interest rates are estimated to have fallen by more than 8% to $1.1 billion in August, and by about 16% to $6 billion in the April-August period. Gems and jewelry saw the second steepest decline of 22% in August, behind only petroleum products, whose exports shrank by more than 30% to $5.9 billion.
Technical goods, the largest item in India’s export basket, rose 7.7% to $9 billion – the first after eight months – while in April and August they were 4.5% lower at $44.6 billion.
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