India witnesses Exports bounceback, Trade Gap narrows

Halting the two-month plunge, exports grew by 4.62 percent to USD 22.9 billion in September due to the healthy growth in the sectors like engineering and gems and jewelry. The exports stood at USD 21.8 billion in September 2015. Indicating a clear turnaround of the continuous decline in Indian exports, official data on Friday showed September exports at USD 22.88 billion increased 4.62 percent over the ones recorded in the same month last year at USD 21.87 billion.

Cumulatively for the six-month in the April-September period, exports were down 1.74 percent at USD 131.4 billion, as compared to the exports of USD 133.7 billion over the same period last year. The numbers are confirmed by the data released by the Commerce Ministry.

The government said that the growth in exports has declined for the US, European Union and China but Japan revealed positive growth for July 2016 against the corresponding period of the previous year, as per latest World Trade Organization statistics. In September 2016, Non-petroleum exports are valued at USD 20.33 billion as compared to USD 19.28 billion in September 2015, an increase of 5.44 percent. Imports, however, tapered by 2.54 percent to USD 31.22 billion, leaving a trade deficit of USD 8.33 billion in the month under review.

The trade gap in the month of September was lower than USD 10.16 billion in September 2015, saw an 18 percent fall. Cumulative Imports for April-September were worth more than USD 174.41 billion, a 13.77 percent fall from USD 202.27 billion worth imports registered for the same period a year ago. The trade deficit for April-September cumulatively also declined more than 37 percent to USD 43 billion against USD 68.55 billion in the equivalent period of 2015-16. As per the data given by the RBI on Friday, taking merchandise and services together, overall trade deficit for April-September 2016-17 is estimated USD 161.2 billion, which is more than 60 percent lower than the deficit of USD 403.7 billion during April-September 2015-16.

The export sectors which recorded positive growth include engineering which grew by 6.51 percent, exports of gems and jewelry went up by 22.42 percent, handicrafts exports went up by 23 percent, textiles grew by 12.62 percent and chemicals exports hiked by 6 percent.

However, the exports of petroleum goods dropped 1.43 percent to USD 2.55 billion in September. Oil imports during the month went up by 3.13 percent to USD 6.88 billion.

Gold imports went down by 10.3 percent to USD 1.8 billion in September 2016, which helped narrow the trade gap.

During April-September this financial year, exports declined by 1.74 percent to USD 131.4 billion. Imports contracted by 13.77 percent to USD 174.4 billion as well, leaving a trade deficit of USD 43 billion. Since December 2014, exports dipped for the straight 18 months till May 2016 because of the weak global demand and slip in oil prices. Shipments saw the growth only in June this year thereafter again entered into negative zone in July and August.

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