India: Trade deficit shrinks on lower imports
November 1, 2011
In September, the trade balance incurred a deficit of USD 9.8 billion, which marked an improvement over the USD 14.0 billion shortfall recorded in August. The smaller deficit was the result of a significant slowdown in imports, as exports also moderated slightly. Imports totalled USD 34.6 billion, which represented a 17.2% increase over the value reached in the same month last year. The print came in below the 29.2% expansion recorded in August and marked, in fact, the fourth consecutive month of moderating growth rates. Furthermore, the trend is pointing downwards, with annual average growth in imports falling from 22.7% in August to 21.3% in September. Meanwhile, exports reached USD 24.8 billion, which represented a 36.4% expansion over the same month last year. The increase came in below the 46.1% rise observed in the previous month but, nevertheless, brought the annual average growth to 42.9%, up from the 42.2% increase observed in August. The government has set an export target of USD 500 billion for the fiscal year 2013/14, which is nearly twice the USD 290 billion reached in the last 12 months.