India’s trade deficit narrows to $8.78 billion, exports dip 5.4% in October

India’s exports declined 5.4 percent to $24.82 billion in October on account of dip in shipments.

   
Indian exports

After recording positive growth in September, India’s exports declined 5.4 percent to $24.82 billion in October on account of dip in shipments of petroleum products, gems and jewellery, leather, and engineering goods. Trade deficit in October narrowed to $8.78 billion as against $11.76 billion, as imports also fell 11.56 percent to $33.6 billion during the month under review.

The Commerce and Industry Ministry said in a statement said, “India’s merchandise exports in October 2020 were $24.82 billion, as compared to $26.23 billion in October 2019, showing a fall of 5.4 percent.” Major export commodities which recorded negative growth during October included petroleum products(53.30 percent), cashew (21.57 percent), gems and jewellery (21.27 percent), leather (16.69 percent), man-made yarn/fabrics/made-ups (12.82 percent), electronic goods(9.40 percent), coffee(9.25 percent), marine products(8.09 percent) and engineering goods (3.84 percent).

Sectors which showed positive growth included rice, oil meals, iron ore, oil seeds, carpet, pharmaceuticals, spices, cotton and chemicals. During April-October 2020, exports declined 19.05 percent to $150.07 billion, while imports fell 36.28 percent over the same period last year to $182.29 billion.

Oil imports dipped 38.52 percent to $5.98 billion in October. During April-October, it declined 49.5 percent to $37.84 billion. After contracting for six straight months, India’s exports rose 5.99 percent to $27.58 billion in September. After contracting for six straight months, India’s exports rose 5.99 percent to $27.58 billion in September.