India: Trade deficit narrows in September
October 17, 2016
Recently-released data related to India’s external sector showed that the trade deficit totaled USD 8.3 billion in September, which was a smaller shortfall than the USD 10.2 billion gap recorded in September 2015 (August 2016: USD 7.7 billion deficit). The rolling 12-month trade deficit narrowed from USD 95.4 billion in August to USD 93.5 billion in September, which is the smallest accumulated shortfall since December 2009.
The improvement in trade data came on the back of a pick-up in export growth and a slight contraction in imports. Imports totaled USD 31.2 billion in September, which represented a 2.5% fall from the same month last year (August 2016: -13.5% year-on-year; September 2015: -26.1% yoy).
Meanwhile, export growth picked up steam, rising from August’s 1.2% over the same month last year to 4.6% (September 2015: -24.2% yoy). India’s shipments abroad totaled USD 31.2 billion, which represented an over one-year high.