Trade deficit at 10-month high

A strong show by engineering, petroleum and gems & jewellery sectors pushed up exports for the second month in October by 9.6%, although the trade deficit too shot up to 10-month high of $10.2 billion on account of surge in gold imports. Exports of engineering products rose by 13.9%, gems and jewellery by 21.8%, petroleum by 7.2% and chemicals by 6.7% during the month compared to the same month last year.
Imports too increased by 8.1% to $33.7 billion. It entered positive zone after nearly two years. It grew by 26.8% in November 2014.
Jump in gold imports by 108.43 per cent to $3.5 billion in October, pushed the trade deficit to a 10-month high of $10.2 billion as against $9.69 billion in the same month last year.
It was in December 2015 when trade deficit saw a high of $11.7 billion.
During the April-October period of current fiscal, exports dipped by 0.2% to $154.9 billion. Imports too contracted by 10.9% to $208 billion, leaving a trade deficit of $53.2 billion.Oil imports in October grew by 3.9% to $7.1 billion. Non-oil imports rose by 9.3% to $26.5 billion. From December 2014 exports had fallen for 18 straight months till May 2016 due to weak global demand and slide in oil prices. Shipments witnessed growth only in June this year thereafter again entered into negative zone in July and August.

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