Economy

Exports decline 6.5% in September

Our Bureau New Delhi | Updated on October 15, 2019 Published on October 15, 2019

Trade deficit narrows on sharper decline in imports

Exports of goods declined for the second straight month in September, by 6.57 per cent (year-on-year), to $26.03 billion, as outbound shipments of petroleum products and labour-intensive goods such as engineering items, gems and jewellery, readymade garments and leather products continued to fall.

The trade deficit narrowed to $10.86 billion in September 2019 from $14.95 billion in September 2018 as imports fell 13.85 per cent during the month to $36.89 billion.

Exporters warn of high downside risks in the coming months with softening of commodities prices (including crude), and the fallout of events such as the ongoing US-China trade war, the forthcoming Brexit, and developments in Iran, Turkey and other Gulf nations, which could aggravate the problems of the world economy.

“Domestic issues, including access to cheap credit, remain a problem area for MSMEs, especially for merchant exporters. Interest equalisation support to all agriculture exports, benefits on sales to foreign tourists and quick refund of GST, especially Input Tax Credit refund, should be quickly and seriously looked into,” said Sharad Kumar Saraf, President, FIEO.

Exports in the April-September period fell 2.39 per cent to $159.57 billion while imports declined 7.01 per cent to $243.28 billion.

The trade deficit narrowed to $83.70 billion in the April-September period compared to $98.15 billion in the same period last year.

Published on October 15, 2019
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