India’s exports grew after a gap of six month in September
India’s exports grew after a gap of six months in September driven by growth in outbound shipment of cereals, carpets, rice, oil meals, and iron ore. Exports rose 5.27% on year to $27.4 billion in September while imports declined 19.6%, leaving a trade deficit of $2.91 billion, preliminary data released by the commerce and industry ministry showed. The trade deficit narrowed from $11.67 billion in September 2019.
Exports in September 2019 were $26.02 billion. Gold imports shrank 52.85% last month.
“India is thus a net importer in September 2020…showing a substantial improvement of 75.06%,” the ministry said in a statement
Non-oil, non-gold imports- an indicator of the strength of domestic demand- declined 13.29% on-year last month.
“The y-o-y growth in merchandise exports in September 2020 is heartening, after the faltering trend seen in the previous month. Regardless, the sharp gap in non-oil non-gold merchandise imports remains a cause for concern regarding the strength of domestic demand,” said Aditi Nayar, principal economist at ICRA.