October 2020: Trade Deficit Highest in FY21

India’s trade deficit in October widened to the most in this financial year as exports declined 5.12% on-year to $24.89 billion after growing in September, led by a drop in outbound shipments of petroleum products, gems and jewellery, leather and engineering goods.

The contraction in exports was lower than the preliminary estimate of a 5.4% decline as shown by the commerce and industry ministry earlier this month.

The trade deficit was $8.71 billion, compared with $8.78 billion in the preliminary estimates and $11.75 billion in October 2019, as imports shrank 11.53% to $33.61 billion. Gold imports rose 35.88% while those of electronics were up 16.12%.

After contracting for six straight months, India’s exports had grown in September. In October, 20 of the major 30 export sectors grew.

During April-October 2020, exports declined 19.02% to $150.14 billion, while imports fell 36.28% over the same period last year to $182.29 billion.

No comments: