India's Trade Deficit Narrows Marginally In October

India trade deficit fell marginally in October as exports picked up while imports eased.

Trade deficit stood at $19.9 billion in October compared to $22.6 billion in September. The monthly deficit in September was at an all-time high.

"The merchandise trade deficit compressed only modestly in October 2021, from the record-high in September 2021, with a heartening sequential uptick in non-oil exports, accompanied by a decline in oil imports after the spike seen in the previous month," Aditi Nayar, chief economist at ICRA said.

• Exports rose to $35.47 billion in October, a 5% rise on a monthly basis and 42.3% annual increase.

• Imports fell 1.8% month-on-month to $55.37 billion. On an annual basis, it increased 62.5%.

• Value of non-petroleum and non-gems and jewellery exports in October 2021 was $26.05 billion, rising 27.5% from October 2020.

• Value of non-oil, non-gold, silver and precious metals imports was $32.42 billion in October 2021, increasing 39.3% year-on-year.

Key Export Items (YoY)

• Petroleum products rose 39.3% to $5.2 billion.

• Gems and jewellery jumped 19.7% to $4.2 billion.

• Readymade garments increased 9.2% to $1.3 billion.

• Drugs and pharmaceuticals fell 8.5% at $2.1 billion.

• Engineering goods rose 36.7% to $9.4 billion.

• Electronic goods increased 40.4% to $1.4 billion.

Key Import Items (YoY)

• Gold imports rose 104.3% to $5.1 billion.

• Coal, coke and briquettes increased 118.9% to $3.3 billion.

• Petroleum, crude and and products up 140.4% at $14.4 billion.

• Machinery, electrical and non-electrical contracted 41.8% to $3.5 billion.

• Electronic goods rose 23.1% to $6.8 billion.

• Iron and steel up 46.6% to $1.4 billion.

• Organic and inorganic chemicals rose 67.6% to $2.6 billion.