India: Exports rise in June for the first time in over a year and a half
July 15, 2016
India’s shipments abroad increased for the first time since November 2014. Exports totaled USD 22.6 billion in June, which represented a 1.3% increase over the same month last year and contrasted the 0.8% contraction seen in May. June’s result was driven by a rise in non-oil exports, such as organic and inorganic chemicals.
On the other side of the balance sheet, imports totaled USD 30.7 billion in June, which was a 7.3% drop compared to the USD 33.1 billion recorded in the same month last year. The decrease mainly reflected lower oil imports, which fell 16.4% year-on-year.
India’s trade deficit widened to USD 8.1 billion in June from USD 6.3 billion in May. However, the 12-month rolling trade deficit continued to improve in June. It totaled USD 105.5 billion, which was smaller than the USD 108.2 billion trade deficit recorded for the 12 months up to May and marked its lowest level since February 2010. Low oil prices are reducing the import bill for the hydrocarbon and, in turn, improving India’s trade balance.
Author: Christopher Mc Innes, Economist