India’s April-June trade deficit down 31.55% at $33.08 billion

India's trade deficit showed a 31.55 per cent year-on-year decline in April-June 2014-15 at $33.08 billion against a trade deficit of $48.33 billion during April-June 2013-14. The narrowing of the trade deficit was due mainly to a 9.31 per cent year-on-year increase in merchandise exports combined with a 6.92 per cent decline in imports during the quarter.

India imported goods valued at $38.24 billion (Rs228,427.88 crore) during June 2014, which was up 8.33 per cent in dollar terms and 10.80 per cent higher in rupee terms  compared with imports valued at $35.30 billion (Rs206,163.02 crore) in June 2013.

Imports looked up for the first time in three months, posting a growth of 8.33 per cent at $38.24 billion in June 20-14, which pushed up the country's trade deficit for the month marginally to $11.76 billion, compared with $11.28 billion in June 2013.

Imports increased on the back a 65.13 per cent surge in the country's gold imports, which shot up to $3.12 billion in June this year from $1.88 billion in the same month last year and rising oil imports.

Cumulative value of imports during April-June 2014-15 stood at $113.20 billion (Rs676,694.53 crore) against $121.61 billion (Rs678,294.38 crore), showing a negative growth of 6.92 per cent in dollar terms and a negative growth of 0.24 per cent in rupee terms over the comparable period of the previous year.

Exports from the country during June 2014 were valued at $26.48 billion (Rs158,165.21 crore), which was 10.22 per cent higher in dollar terms and 12.74 per cent higher in rupee terms compared to exports worth $24.02 billion (Rs140,289.92 crore) during June 2013.

Cumulative value of exports for April-June 2014-15 stood at $80.11 billion (Rs478,928.90 crore) against $73.29 billion (Rs409,750.38 crore), a growth of 9.31 per cent in dollar terms and a 16.88 per cent increase in rupee terms over the same period last year.

Oil imports, which account for bulk of the country's import bill, were valued at $13.34 billion during June 2014 and showing a 10.90 per cent increase from oil imports valued at $12.03 billion in June last year. Oil imports during April-June 2014-15 were up 4 per cent at $40.79 billion compared to oil imports worth $39.20 billion in the corresponding period last year.

Non-oil imports during June, 2014 were estimated at $24.90 billion, which was 7 per cent higher than such imports worth $23.27 billion in June 2013. Non-oil imports during April-June 2014-15 were down 12.1 per cent at $72.41 billion compared with such imports valued at $82.41 billion in April-June 2013-14.        

The government has decided to release data on service trade along with the merchandise trade data. However, the latest service trade data as given by RBI on 15 July 2014 is for May 2014 while the merchandise trade data is for June 2014.