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India’s Trade Deficit Narrows In October As Exports, Imports Both Decline

While exports declined 5.12% year-on-year, imports fell 11.53% in October 2020.

Container ship sits docked at the Jawaharlal Nehru Port, operated by Jawaharlal Nehru Port Trust (JNPT), in Navi Mumbai, Maharashtra, India. (Photographer: Dhiraj Singh/Bloomberg)  
Container ship sits docked at the Jawaharlal Nehru Port, operated by Jawaharlal Nehru Port Trust (JNPT), in Navi Mumbai, Maharashtra, India. (Photographer: Dhiraj Singh/Bloomberg)  

India’s trade deficit narrowed to $8.71 billion in October 2020 from $11.75 billion a year ago as both exports and imports fell during the month.

After recording positive growth in September, India’s exports fell 5.12% from a year ago to $24.89 billion, due to a drop in shipments of petroleum products, gems and jewellery, leather and engineering goods, according to government data.

Imports also fell 11.53% year-on-year to $33.6 billion in October 2020.

Major export commodities that recorded negative growth were petroleum products (52%), cashew (21.57%), gems and jewellery (21.27%), leather (16.67%), manmade yarn/fabrics/made-ups (12.8%), electronic goods (9.4%), coffee (9.2%), marine products (8%) and engineering goods (3.75%).

During April-October 2020, exports declined 19.02% to $150.14 billion, while imports fell 36.28% to $182.29 billion over the same period a year ago.

Oil imports dipped 38.52% to $5.98 billion in October. During April-October, oil imports declined 49.5% to $37.84 billion, the data showed.