India's April-July trade deficit zooms to $51.50 bn

India added 11.45 billion its trade deficit in July 2017, taking overall trade deficit for the first four months of the current fiscal (April-July 2017-18) to an estimated $51.50 billion, provisional figures released by the commerce ministry showed.

India's imports spurted 15.42 per cent to $34 billion in July 2017 while its exports grew at a slow pace of 3.94 per cent to 22.54 billion. If the trend continues the country could end the current fiscal with a record trade deficit of over $150 billion.

The trade deficit for July 2017, at $11.45 billion compares with the deficit of $7.76 billion in July 2016.

The July 2017 trade deficit, however, was lower compared to the deficit of $12.96 billion in June and $13.84 billion shortfall in May.

India merchandise exports during July 2017 grew 3.94 per cent in dollar terms were valued at $22.54 billion (Rs145,308.10 crore) against $21.69 billion (Rs145,770.39 crore) during July 2016, showing a growth of 3.94 per cent in dollar terms a growth of 0.32 per cent in rupee terms.

Major commodity groups of export that showing positive growth in July 2017 over the corresponding month last year included engineering goods (15.16 per cent), petroleum products (20.27 percent), organic and inorganic chemicals (20.67 percent), cotton yarn/fabs./made-ups, handloom products etc (5.39 per cent) and marine products (30.53 per cent)

Cumulative value of exports during April-July 2017-18 stood at $94.76 billion (Rs610,780.14 crore) against $87.00 billion (Rs582,731.37 crore) showing a growth of 8.91 per cent in dollar terms and a 4.81 per cent growth in rupee terms over the same period last year.

Exports of products excluding petroleum and gems and jewellery in July 2017 were valued at $22.54 billion against $21.69 billion in July 2016, an increase of 6.93 per cent. Such exports during April-July 2017-18 were valued at $94.76 billion against $87.00 billion in the corresponding period in 2016-17, an increase of 9.05 per cent.

India imported goods valued at $34 billion (Rs219,108.89 crore) in July 2017, which was 15.42 per cent higher in dollar terms and 10.70 per cent higher in rupee terms over the level of imports valued at $29.45 billion (Rs197,932.93 crore) in July 2016.

Cumulative value of imports for the period April-July 2017-18 stood at $146.26 billion (Rs942,740.00 crore) against $114 billion (Rs763,687.22 crore) during April-July 2016-17, showing a growth of 28.30 per cent in dollar terms and a 23.45 per cent rise in rupee terms over the same period last year.

Major commodity group of imports showing high growth in July 2017 included petroleum, crude and products (15.02 per cent), electronic goods (22.5 per cent), machinery, electrical and non-electrical (7.34 per cent), pearls, precious and semi-precious stones (6.86 per cent) and gold (95.05 per cent).

Oil imports during July 2017 were valued at $7.84 billion, which was 15.02 per cent higher than oil imports valued at $6.82 billion in July 2016. Oil imports during April-July 2017-18 were valued at $31.02 billion, which was 20.8 per cent higher than oil imports worth $25.67 billion in the corresponding period last year.

Non-oil imports during July 2017 were estimated at $26.15 billion, which was 15.55 per cent higher than non-oil imports of $22.63 billion in July 2016. Non-oil imports during April-July 2017-18 were valued at $115.23 billion, which was 30.46 per cent higher than the level of such imports valued at $88.33 billion in April-July 2016-17.