India’s merchandise trade deficit widened in October to $17.13 billion due in large part to a higher oil import bill, official data released on Thursday showed.
The trade deficit is wider than the $14.61 billion seen in October of last year and the $13.98 billion in September 2018.
Positive growth
“Exports in October 2018 were $26.98 billion, as compared to $22.89 billion in October 2017, exhibiting a positive growth of 17.86%,” a release said. “In rupee terms, exports were ₹1,98,634.84 crore in October 2018, as compared to ₹1,48,962.64 crore in October 2017, registering a positive growth of 33.35%.”
This growth in exports marks a rebound from the contraction of 2.15% seen in September in dollar terms.
The major commodities that saw stronger growth in exports compared with last year include engineering goods (8.87%), petroleum products (49.38%), gems and jewellery (5.48%), organic and inorganic chemicals (34.01%), and drugs and pharmaceuticals (12.83%).
“The October data shows that the exports are again back on double-digit growth trajectory during the on-going festive season,” said Ganesh Kumar Gupta, president of the Federation of Indian Export Organisations“The exports during the month is close to $27 billion, which re-affirms our assessment of reaching the new milestone of $350 billion in the current fiscal, the highest-ever exports figures during recent years braving all the odds.”
“Imports in October 2018 were $44.11 billion (₹3,24,774.78 crore), which was 17.62% higher in dollar terms and 33.07% higher in rupee terms over imports of $37.50 billion (₹2,44,064.20 crore) in October 2017,” the government said.
Oil imports in October 2018 were $14.21 billion, which was 52.64% higher in dollar terms compared with October last year and 30.2% higher than the oil imports of September 2018.