India’s merchandise exports increased somewhat year over year to $34.58 billion in September, albeit from a low base (-2.8%). However, with import growth also being moderate at 1.6%, the trade imbalance shrank to $20.78 billion, its lowest level in five months. With exports falling sharply by 9.3% year over year in August, the trade imbalance reached its largest level in ten months at $29.6 billion.
The steep decline in imports of gold and oil in September compared to August was the reason the month’s total imports were limited to $55.36 billion. Compared to $10.06 billion the month before, gold imports in September were $4.3 billion.
September’s $12.5 billion in oil imports was 10.4% less than the previous year because of a steep decline in the price of crude oil globally. In September, engineering exports increased by 10.5% to $9.8 billion.
During the first half of the fiscal year, imports increased by 6.1% to $350.6 billion, while merchandise exports increased by just 1.02% to $213.2 billion. Exports of electronics increased 7.9% to $2 billion, while exports of ready-made clothing increased 17.3% to $1.1 billion.
Exports of agriculture increased dramatically. Tobacco exports increased by 50% to $206 million, coffee exports by 74% to $158 million, rice exports by 25% to $974 million, and spice exports by 26% to $334 million.
