India’s merchandise exports in October shrunk 17.5 per cent year-on-year to $21.35 billion, leaving the shipment in the negative territory for the eleventh consecutive month due to a persisting weak global demand.
Imports contracted an annual 21.15 per cent to $31.1 billion, also for the eleventh straight month, according to data released by the Commerce Ministry on Monday.
This resulted in the trade deficit narrowing to $9.76 billion from $13.57 billion in October last year.
Oil imports
Oil imports during the month under review fell 45.3 per cent to $6.8 billion, while non-oil imports shrunk 9.9 per cent to $24.3 billion. Gold imports in October plunged 59.5 per cent to $1.7 billion. Only ten of the 30 major import sectors showed positive growth. These included electrical and non-electrical machinery (4.45 per cent growth to $2.3 billion), transport equipment (30 per cent to $1.5 billion), pearls and precious stones (14 per cent to $1.5 billion) and electronic goods (13.6 per cent to $3.8 billion).
All but ten of the 30 major export sectors contracted. The sectors in the red included major ones such as petroleum products (-57 per cent to $2.4 billion), engineering (-11.6 per cent to $4.6 billion) and gems and jewellery (-12.8 per cent to $3.5 billion).
Exports during April-October this fiscal contracted by 17.6 per cent to $154.29 billion, while imports during the period shrunk 15.1 per cent to $232 billion, narrowing the trade deficit during the first seven months of the current fiscal to $77.76 billion against $86.26 billion during the same period last fiscal.