India: Trade deficit narrows in October
November 16, 2015
Recently released data related to India’s external sector showed that the trade deficit totaled USD 9.8 billion in October, which was a smaller shortfall over the USD 13.4 billion deficit observed in the same month last year and marked the best result in eight months. For the 12 months up to October, the trade deficit recorded USD 131.0 billion, which was also a smaller shortfall than the 134.6 billion deficit tallied in the 12 months up to September.
The narrowing in the trade deficit showed that imports contracted a notable 21.1% annually in October. The figure followed September’s 25.1% drop, which had marked the largest contraction since September 2009. October’s fall was largely the result of the low oil-price environment. Accordingly, oil imports totaled USD 6.8 billion, which represented a 45.3% decrease compared to the same month of the previous year.
Meanwhile, exports fell 18.2% in October, which was a softer drop than September’s 24.4% contraction. September’s result had marked the largest contraction since July 2009.