With global demand not showing any signs of a pickup, India’s merchandise exports contracted for the eighth month running in July, registering a 10.3% drop over last year, PTI reported. The trade deficit widened to $12.8 billion in July from $10.8 billion in June, data released by the ministry of commerce and industry showed. Imports fell 10.3% to $35.95 billion while exports came in at $23.1 billion. “Amidst the persisting contraction of merchandise exports on a year-on-year basis, the rise in shipments in July 2015 from the average of $22 billion in the first quarter of FY16 is a silver lining,” said Aditi Nayar, senior economist, at Investment Information and Credit Rating Service. In the April-July period, exports fell 15% over last year. India’s exports were hurt because of a stronger currency, a problem that could worsen after the yuan devaluation. Oil imports were 35% lower in July over last year while non-oil imports were higher by 3.80%, suggesting improving domestic demand.
