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India Exports Rise, But Trade Deficit Swells

India Exports Rise, But Trade Deficit SwellsIndia Exports Rise, But Trade Deficit Swells

India's exports recorded a double digit growth of 10.29% after a gap of three months to $23.81 billion in August, mainly on account of rise in shipments of chemicals, petroleum and engineering products, government data showed Saturday.

Imports too rose by 21.02% to $35.46 billion in August from $29.3 billion in the year-ago month, according to the data released by the commerce ministry, PTI reported.

Trade deficit widened to $11.64 billion in the month under review from $7.7 billion in August 2016, due to increase in gold imports that rose by about 69% to $1.88 billion last month. In April 2017, exports rose by 19.77%.

Oil and non-oil imports grew by 14.22% and 23% to $7.75 billion and $27.7 billion, respectively in August.

Cumulative exports during April-August 2017-18 increased by 8.57% to $118.57 billion, while imports grew by 26.63% to $181.71 billion, leaving a trade deficit of $63.14 billion.

"In continuation with the positive growth exhibited by exports for the last twelve months, exports during August have shown growth of 10.29% in dollar terms," the ministry said in a statement.

Commenting on the data, Federation of Indian Export Organizations President Ganesh Gupta said while the August figures are encouraging, "I am worried about future growth as order booking position from October onwards is not good in view of increasing global uncertainties, rupee volatility and challenges at the domestic front."

"Exporters have stopped taking orders with least or no working capital at their disposal due to blockage of funds under the Goods and Services Tax and uncertainties looming large on refunds for the months of July to October 2017," he added.

In August, petroleum, engineering and chemicals exports grew by 36.56%, 19.53% and 32.41%, respectively. However, sectors which recorded negative growth include handicrafts, gems and jewelry, and fruits and vegetables.

 

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