India: Trade deficit continues to narrow in August
September 16, 2016
Recently-released data related to India’s external sector showed that the trade deficit totaled USD 7.7 billion in August, which was a smaller shortfall than the USD 12.5 billion gap recorded in August 2015 and virtually mirrored the USD 7.8 billion shortfall in July this year. The rolling 12-month trade deficit totaled USD 95.7 billion in August, which is the smallest accumulated shortfall since 2009.
The smaller trade deficit came on the back of another double-digit contraction in imports. Imports totaled USD 29.2 billion in August, which represented a 13.5% plunge over the same month last year (July: -18.1% year-on-year).
Meanwhile, export growth returned to positive territory in August. India’s shipments abroad totaled USD 21.5 billion, which represented a 1.2% increase over the same month last year and contrasted the 6.3% plunge in July.