Exports Fall After 19 Months, Trade Deficit Records $31 Billion

Exports fall after 19 months, trade deficit records $31 billion: Export-Import Data.

There has been a decline in the country’s exports in July. According to official data, exports declined 0.76 percent to $35.24 billion last month.

Giving information about the export-import data, Commerce Secretary BVR Subramaniam said that the trade deficit in July stood at $ 31.02 billion.

According to the data, imports stood at $66.26 billion in July as against $46.15 billion in the same period last year. The trade deficit in July 2021 was USD 10.63 billion.

Subramaniam said exports in the first four months of the current financial year stood at $156.41 billion. This will help in achieving the export target of $470 billion.

According to the data, gold imports in July declined by almost half to $2.37 billion. In July last year, gold worth $4.2 billion was imported.

Data released by the Ministry of Commerce and Industry on Tuesday showed July merchandise exports declined 0.76 percent to $37.24 billion from a year ago.

While imports rose 44 percent to 66.26 billion during the month due to higher commodity prices and a weaker rupee.

As a result, the trade deficit, representing the gap between exports and imports, tripled from $10.63 billion in July last year.

Major export sectors, including engineering, gems and jewelry, petroleum, pharma, ready-made garments, and cotton yarn, registered a fall in July due to subdued demand in western markets.

Other factors affecting exports include India’s restrictions on the sale of wheat, steel, iron and petroleum products abroad.

Exports fall after 19 months: What will be the effect on the rupee?

The mounting losses are likely to put pressure on the rupee, which has strengthened against the dollar in the past few days after touching a low of 80.16 two weeks ago.

However, a fall in commodity and energy prices on bearish fears will help stabilize the rupee.

In the coming days, imports are expected to moderate on softening commodity prices, but the slowdown in US and European markets may affect exports.

In a press briefing on Tuesday, Commerce Secretary BVR Subramaniam said India’s exports are expected to reach $470-480 billion in the current fiscal.

Economists expect the current account deficit to double to 3 percent of GDP in FY13 from 1.2 percent last year.