Economy

Exports up 2.29% in Nov, but gold imports push up trade deficit to two-year high

Press Trust of India New Delhi | Updated on January 16, 2018 Published on December 15, 2016

Exports rose for the third straight month in November, recording a growth of 2.29 per cent, though the trade deficit shot up to about two-year high of $13 billion mainly due to increase in gold imports.

Exports of engineering products rose by 14.10 per cent, petroleum by 5.73 cent and chemicals by 8.3 per cent compared to the same month last year, according to official data released today.

Imports too increased by 10.44 per cent to $33 billion.

Rise in gold imports by 23.24 per cent to $4.36 billion in November pushed the trade deficit to a two-year high of $13 billion as against $10.33 billion in the same month last year.

It was in November 2014 when trade deficit hit a high of $16.86 billion.

Exporters body FIEO said that although growth is encouraging, uncertain global conditions still remains a challenge.

“Though the sentiment still remains low in the global market, factors like US Fed rate hike and demonetisation have also in some way added to the woes of the exporters which may be seen in the figures of coming months,” said FIEO President SC Ralhan.

The country’s merchandise exports during April-November period of the current fiscal recorded a growth of 0.10 per cent to $174.92 billion.

Imports, however, contracted by 8.44 per cent to $241.1 billion, leaving a trade deficit of $66.17 billion as against $88.57 in April-November 2015-16.

Oil imports last month grew by 5.89 per cent to $6.83 billion and non-oil imports by 11.7 per cent to $26.18 billion.

Since December 2014, exports fell for 18 consecutive months till May 2016. Shipments witnessed growth only in June this year, but again slipped in July and August. Exports started recording positive growth from September.

Published on December 15, 2016
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