The country’s goods trade deficit in April, the first month of FY’18, widened to $13.2 billion — the highest since the $16.2 billion clocked in November 2014, data released on Monday by the Commerce Ministry showed.
This was due to goods imports in April recording a historic 49.07% year-on-year growth to $37.9 billion — following a surge in gold, oil, coal, chemicals, pearls and precious stones, machinery, transport equipment and electronics imports — and outpacing exports despite shipments rising for the eighth consecutive month.
Goods exports in April were worth $24.6 billion but its growth slowed down on a month-on-month basis to 19.8% as against the 27.12% growth in March. Non-petroleum and non-gems and jewellery exports in April increased 17.06% to $177.18 billion. The growth in exports is positive for all major economies — USA (4.74%), European Union (0.16%) and Japan (13.3%) — barring China (where it shrunk -1.56%) for February 2017 over the corresponding period of the previous year as per latest WTO statistics, the Ministry said.
Gold imports
In India, gold imports continued to surge when it jumped 211.35% in April to $3.8 billion. In March, the imports of the yellow metal had risen 328.9% to $4.1 billion while in February it had increased by 147.6% to $3.4 billion. Oil imports in April rose 30.12% to $7.3 billion. In this connection, it is mentioned that the global Brent prices ($/bbl) have increased by 25.4% in April 2017 vis-à-vis April 2016 as per World Bank commodity price data(The pink sheet), the Ministry said. Non-oil imports during April rose 54.5% to $305.25 billion.
Chemicals imports in April increased 34.8% to $1.7 billion, and pearls and precious / semi-precious stones imports went up 51.7% to $3.7 billion. Coal imports in April rose 95% to $1.86 billion, while machinery imports increased 37.4% to $2.65 billion, and transport equipment imports went up 30.1% to $1.18 billion. Electronics goods imports surged 74.1% to $4.4 billion.
On the exports side, petroleum products shipments rose 49% to $2.94 billion while readymade garments exports increased 31.7% to $1.7 billion. Exports of engineering goods went up 28.2% to $6.1 billion, while chemicals increased 24% to $1.29 billion and gems and jewellery exports rose 15% to $3.97 billion.
Drugs and pharma exports, however, shrunk nearly 8% to $1.29 billion. According to G.K. Gupta, president, Federation of Indian Export Organisations, double digit growth in exports in April – where 23 of the 30 major product groups registered positive growth — showed Indian economy’s capability to recover from the challenging times. He said increase in imports of oil and pearls and precious/semi-precious stones augur well for exports of petroleum products and gems and jewellery respectively as such imports are inputs for the exports. However, the reasons for increasing electronic imports need to be analysed.
