India’s trade deficit at $40 bn as June imports add $12.96 bn

India added $12.96 billion to its trade deficit in June 2017, taking overall trade deficit for the first three months of the current fiscal (April-June 2017-18) to an estimated $40.05 billion, provisional figures released by the commerce ministry showed.

The trade deficit for June 2017, at $12.96 billion compares with the deficit of $8.12 billion during June 2016.

The June 2017 trade deficit, however, was lower compared to the deficit of $13.84 billion in May and the $13.25 billion shortfall in April.

Merchandise exports from the country in June 2017 stood at $23.56 billion (Rs 151,844.56 crore) compared to $22.57 billion (Rs151,904.56 crore) showing a growth of 4.39 per cent in dollar terms and a 0.04 per cent decline in rupee terms (due to an appreciation of the rupee).

During June 2017, major commodity groups of export showing positive growth over the corresponding month of last year included engineering goods (14.78 per cent), petroleum products (3.60 per cent), organic and inorganic chemicals (13.20 per cent), rice (27.29 per cent) and marine products (24.27 per cent).

Cumulative value of exports for the period April-June 2017-18 stood $72.21 billion (Rs465,472.04 crore) against $65.31 billion (Rs436,960.98 crore), showing a growth of 10.57 per cent in dollar terms and a 6.52 per cent rise in rupee terms over the same period last year.

Exports, other than petroleum and gems & jewellery in June 2017 were valued at $17.48 billion against $16.49 billion in June 2016 - an increase of 6.02 per cent. Such exports during April-June 2017-18 were valued at $52.71 billion compared to $48.03 billion for the corresponding period in 2016-17 - an increase of 9.75 per cent.

Imports during June 2017, on the other hand, were valued at $36.52 billion (Rs235,361.85 crore) showing a 19.01 per cent increase in dollar terms and a 13.96 per cent rise in rupee terms compared to imports valued at $30.69 billion (Rs206,524.39 crore) in June 2016.

Cumulative value of imports for the period April-June 2017-18 stood at $112.26 billion (Rs723,631.11crore) against $84.55 billion (Rs565,754.29 crore), showing a growth of 32.78 per cent in dollar terms and a 27.91 per cent rise in rupee terms over the same period last year.

Major commodity groups of imports showing high growth in June 2017 included petroleum, crude and products (12.04 per cent), electronic goods (24.22 per cent), pearls, precious and semi-precious stones (86.31 per cent), machinery, electrical and non-electrical (7.02 per cent) and gold (102.99 per cent).

Oil imports during June 2017 were valued at $8.13 billion which was 12.04 per cent higher than oil imports valued at $7.25 billion in June 2016. Oil imports during April-June 2017-18 were valued at $23.18 billion, which was 22.98 per cent higher than oil imports of $18.85 billion in the corresponding period last year.

Non-oil imports during June 2017 were estimated at $28.40 billion, which was 21.17 per cent higher than non-oil imports of $23.44 billion in June 2016. Non-oil imports during April-June 2017-18 were valued at $89.09 billion, which was 35.60 per cent higher than the level of such imports valued at $65.70 billion in April-June 2016-17.