India: Exports climb in July and imports drop, leading to a narrower trade deficit
August 14, 2019
Merchandise exports increased 2.3% year-on-year in July to reach USD 26.3 billion, contrasting the 9.7% decrease in June. An over 50% increase in electronic good exports, in addition to an over 20% rise in pharmaceutical exports, helped exports return to growth territory in July. Merchandise imports, meanwhile, fell 10.4% in July to USD 39.8 billion, following the 9.1% decrease in June, on reduced imports of gems and jewelry, and petroleum, crude oil and related products.
The merchandise trade deficit narrowed to USD 13.4 billion in July, down from USD 18.6 billion in the same month a year earlier and the USD 15.3 billion deficit in June. The 12-month trailing sum of the trade deficit narrowed to USD 172.9 billion in July from USD 178.1 billion in June.
Author: Edward Gardner, Economist