India Exports Dip, Imports Grow In October

India’s goods exports dropped 5.04 per cent year-on-year to $26.09 billion in October 2014 while imports grew 3.16 per cent to $39.45 billion during the same period, widening the trade deficit to $13.3 billion compared with $10.59 billion in October 2013.

According to preliminary figures put out by the Commerce Ministry, outbound shipments of petroleum products, electronics, engineering items and iron ore posted a decline.

Exports of engineering goods, one of the top exported items from India, declined 9.18 per cent to $5.2 billion in October, while electronic products dropped 30.36 per cent to $495 million, as the European market remained shaky. Petroleum products posted a 0.16 per cent decline in exports to $5.62 billion, largely due to falling global prices.

Imports were weighed down in October 2014 by a sharp 19.2 per cent decline in oil imports to $12.36 billion. Non-oil imports, on the other hand, were at $27.08 billion, which was 18.9 per cent higher than last October. Higher non-oil import is an indicator of a possible increase in manufacturing and production activities in the economy.

Total exports in April-October 2014-15, at $ 189.79 billion, was 4.72 per cent higher than that of the same period in the previous fiscal. Cumulative value of imports during April-October was $ 273.55 billion, up 1.86 per cent.Trade deficit in April-October 2014-15 at $ 83.75 billion was lower than $87.31 billion in April-October 2013-14.