With goods imports outpacing exports in June, trade deficit for the month widened to $12.95 billion, according to data released by the commerce ministry on Friday. In June 2016, the goods trade deficit was only $8.1 billion.
Continuing with growth indicated since September 2016, goods exports in June 2017 rose 4.39% year-on-year to $23.56 billion.
However, imports in June jumped 19% to $36.5 billion.
Major commodity group of imports showing high growth in June were petroleum, crude & products (12.04%), electronic goods (24.22%), pearls, precious & semi-precious stones (86.31%), machinery, electrical & non-electrical (7.02%) and gold(102.99%).
“After showing a robust trend, India’s export basket is showing signs of muted growth, though the engineering sector has maintained its vibrancy in June,” said T.S. Bhasin, chairman, EEPC India, the exporters’ body. The currency impact in terms of stronger rupee hurting the exports is clearly visible in the form of shipments showing a negative growth, measured in Indian rupees, he said. Unabated global liquidity flows into Indian financial markets are casting a shadow on the competitiveness of Indian exports, he added.
Oil imports in June rose 12.04% to $8.12 billion.