India’s Trade Deficit Widens Less Than Estimated in October
India’s trade deficit widened less than estimated last month, as a third-straight month of decline in exports offset a sharp plunge in imports amid weak global demand conditions.
The gap between exports and imports was at $11 billion in October from $10.9 billion in September, data released by the Commerce Ministry showed Friday. That was lower than the median estimate for a $11.9 billion deficit in a Bloomberg survey of 20 economists.
- Imports declined 16.3% from a year ago to $37.4 billion, compared with a 13.9% fall in September, showing muted demand in the domestic economy
- Exports fell 1.1% to $26.4 billion, against a 6.6% drop the previous month
- The numbers are the latest in a slew of data that points to weaker economic activity in the quarter started October, with purchasing managers’ surveys earlier signaling muted activity in the manufacturing and services sectors
- While a global slowdown and U.S.-China trade dispute are among reasons for waning demand, India this month opted out of a pan-Asian trade deal that would have paved the way for the economy’s integration with the rest of the region
- Oil imports dropped 31.7% from a year earlier to $9.6 billion, while non-oil imports were 9.2% lower at $27.8 billion
- To read the full statement on trade numbers, click here
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