India’s merchandise exports contracted for the first time in nine months in June while imports shrank first time in four months, signalling that rising protectionism and trade tensions between the US and China are impacting India’s trade prospects as well.
Exports in June fell 9.71% to $25.01 billion, while imports dipped 9.06% to $40.29 billion, leaving behind a trade deficit of $15.28 billion during the month. Comparatively, China’s exports in June fell 1.3%, while imports shrank 7.3%, leading to a trade surplus of $50.98 billion, significantly higher than what analysts projected.
During June, petroleum exports declined 33% while non-oil, non-gems and jewellery exports contracted by 4.86%. Among other major items, exports of gems and jewellery (10.7%), ready-made garments (-9.18%), chemicals (-8.17%) and engineering goods (-2.65%) also contracted.