India: Trade deficit narrows in July
August 12, 2016
Recently released data related to India’s external sector showed that the trade deficit totaled USD 7.8 billion in July, which was a smaller shortfall than the USD 12.8 billion gap recorded in July 2015 and the USD 8.1 billion shortfall tallied in June. For the 12 months up to July, the trade deficit recorded USD 100.5 billion, which was an improvement from the USD 105.5 billion gap tallied in the 12 months up to June.
The smaller trade deficit came on the back of a plunge in imports. Imports totaled USD 29.5 billion in July, which represented a 18.1% drop over the same month last year (June: -7.3% year-on-year). The fall was driven by a drop in oil imports, which contracted 28.1% annually in July.
Meanwhile, exports swung back to contraction in July after increasing for the first time since November 2014 in June. Exports totaled USD 21.7 billion in July, which represented a 6.3% decrease over the same month last year and contrasted the 1.3% rise seen in June.