Oct exports up 9.59%; trade deficit at 10-month high
A strong show by engineering, petroleum and gems & jewellery sectors pushed up exports for the second month in October by 9.59 per cent, although the trade deficit too shot up to 10-month high of USD 10.16 billion on account of surge in gold imports.
Exports of engineering products rose by 13.86 per cent, gems and jewellery by 21.84 per cent, petroleum by 7.24 per cent and chemicals by 6.65 per cent during the month compared to the same month last year, the official data released on Tuesday showed.
Exporters body FIEO said this is a very encouraging sign as most of the global economies are still reeling under pressure to perform and global demand still does not seems to pick up.
“If this kind of positive growth continues in the coming months, we are definitely on course to achieve USD 280 billion or even more in exports during this fiscal,” it said.
Imports too increased by 8.11 per cent to USD 33.67 billion. It entered positive zone after nearly two-years. It grew by 26.79 per cent in November 2014.
Jump in gold imports by 108.43 per cent to USD 3.5 billion in October, pushed the trade deficit to a 10-month high of USD 10.16 billion as against USD 9.69 billion in the same month last year.
It was in December 2015 when trade deficit saw a high of USD 11.66 billion.
During the April-October period of current fiscal, exports dipped by 0.17 per cent to USD 154.91 billion. Imports too contracted by 10.85 per cent to USD 208 billion, leaving a trade deficit of USD 53.16 billion. Oil imports in October grew by 3.98 per cent to USD 7.14 billion. Non-oil imports rose by 9.28 per cent to USD 26.53 billion.
From December 2014 exports had fallen for 18 straight months till May 2016 due to weak global demand and slide in oil prices. Shipments witnessed growth only in June this year thereafter again entered into negative zone in July and August.
Gold imports jump over two-fold to $3.5 billion; 8-month fall ends
Arresting the eight-month fall, gold imports more than doubled to USD 3.5 billion in October on account of high festival demand. Gold imports had stood at USD 1.67 billion in October last year, official data released on Tuesday showed.
The imports of the precious metal were on a decline since February this year till September. The increase in gold imports pushed the trade deficit to 10-month high of USD 10.16 billion in October from USD 9.69 billion during the same month last year. The imports mainly take care of demand of jewellery industry.