SME Times News Bureau | 15 Nov, 2019
Amid global slowdown and weak domestic demand, India's
merchandise exports declined marginally while imports fell by a sharp 16
percent in October on a year-on-year basis, according to official figures
released on Friday.
As per the data furnished by the Ministry of Commerce & Industry, October
exports were marginally down to $26.38 billion from $26.67 billion reported for
the corresponding period of the previous year.
However, on a sequential basis, exports were higher than $26.03 billion worth
of merchandise that was shipped out in September.
"Non-petroleum and non-gems and jewellery exports in October were $19.04
billion, as compared to $18.93 billion in October 2018, exhibiting a positive
growth of 0.59 per cent," the ministry said in a statement.
On the other hand, imports declined by 16.31 per cent to $37.39 billion in
October from $44.68 billion reported for the corresponding month of 2018.
"Oil imports in October 2019 were $9.63 billion, which was 31.74 per cent
lower in dollar terms, compared to $14.11 billion in October 2018," the
ministry said.
"Non-oil imports in October 2019 were estimated at $27.76 billion which
was 9.19 per cent lower in dollar terms, compared to $30.57 billion in October
2018."
According to the ministry data, non-oil and non-gold imports declined by 10.04
per cent to $25.92 billion in October 2019 from $28.82 billion in October 2018.
Consequently, the trade deficit in October narrowed to $11.01 billion as
against the deficit of $18 billion in the corresponding period of 2018.
"The sharp slide in the merchandise trade deficit in October 2019 relative
to October 2018 was primarily driven by a considerable reduction in imports of
petroleum products, led by both prices and volumes, as well as various
industrial inputs, and some consumer items," said Aditi Nayar, Principal
Economist, ICRA.
"Non-oil, non-gold merchandise imports recorded a substantial 10 per cent
reduction in October 2019, driven by a variety of items, including industrial
inputs such as iron and steel, coal, minerals and ores, and metals, as well as
items such as transport equipment, electronic goods, silver and precious and
semi precious stones."
Engineering Export Promotion Council (EEPC) India Chairman Ravi Sehgal said:
"Negative exports for October,2019 have not come as a surprise, amidst
global slowdown, particularly in the main destinations of Indian exports.
"However, the pace of de-growth for October has come down, month-on-month,
while engineering exports have recorded a marginal growth as well."
Overall, the picture remains challenging, he said, urging the government and
the RBI to take measures to improve competitiveness of Indian exports.