India’s Trade Deficit Widens In August As Exports Contract Further
India’s trade deficit widened in August as a rebound in exports flattened out and imports rose sequentially led by higher shipments of gold.
The trade deficit stood at $6.77 billion compared to a deficit of $4.83 billion in July 2020, according to data from the Department of Commerce on Sept. 15.
- Merchandise exports contracted by 12.66% year-on-year to $22.7 billion in August, compared to a contraction of 10.21% in July.
- Merchandise imports contracted by 26.04% to $29.47 billion in August, compared to a contraction of 28.4% last month.
- Non-oil, non-gold imports fell 29.61% to $19.35 billion in August 2020, from 29.15% last month.
Key Export Items
- Gems and jewellery contracted by 43.28% in August on an annual basis.
- Drugs and pharmaceuticals grew by 17.27%.
- Organic and inorganic chemicals contracted by 4.71%.
- Engineering goods contracted by 7.69%.
- Electronic goods contracted by 13.84%.
- Textiles exports contracted by 14%.
- Petroleum products contracted by 39.9%.
Key Import Items
- Coal, coke and briquettes contracted by 37.83%.
- Petroleum, crude oil and other products contracted by 41.62%.
- Organic and inorganic chemicals contracted by 18.36%.
- Pearls, precious and semi-precious stones contracted by 23.68%.
- Electrical and non-electrical machinery contracted by 41.58%.
- Electronic goods contracted by 11.67%.
- Gold rose by 171.27%.