Economy

Trade gloom: exports fall in July on weak global demand

Our Bureau New Delhi | Updated on January 17, 2018 Published on August 12, 2016

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Sharp fall in trade deficit as imports plummet, too

Exports of goods slipped back into the negative territory in July 2016 posting a fall of 6.84 per cent to $21.68 billion compared with $23.28 billion in the same month last year.

The decline has come as a disappointment for the industry and policy makers who were hoping for a turnaround after shipments increased the previous month following 18 months of fall.

On the positive side, trade deficit lowered to $7.76 billion in July 2016 compared with $13 billion in the same month last year, as imports declined at a steeper rate of 19.03 per cent to $29.45 billion, according to figures released by the Commerce & Industry Ministry on Friday.

Exports have fallen across major sectors including textiles, petroleum products, engineering goods, electronic items, leather products, pharmaceuticals and agriculture produce.

“The decline in exports reflects the contraction in global trade and leading exporting countries like China also witnessed similar decline in the month of July, 2016. Global trade uncertainties are increasing and Brexit has further compounded it,” said SC Ralhan, President, Federation of Indian Export Organisations.

Oil, gold imports dip

Oil imports during July, 2016 at $6.82 billion which was 28 per cent lower than imports in the corresponding period last year.

Import of gold declined 63.65 per cent during the month to $1.07 billion compared to the same month last year while the fall in silver was sharper at 80.34 per cent to $54.58 billion.

Exports for the period April-July 2016-17 were 3.62 per cent lower at $87 billion compared with $90.27 billion in the same period last year. Imports in the first four months of the fiscal at $113.99 billion were 16.33 per cent lower than $136.25 billion.

Trade deficit for April-July, 2016-17 shrunk to $26.99 billion compared with $45.98 billion in the same period last fiscal.

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Published on August 12, 2016
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