India’s trade deficit seen lower despite surging imports

India's merchandise trade deficit for the first eight months of the current financial year (April-November 2016-17) stood at an estimated $66.18 million, showing a 25.28 per cent year-on-year fall from $88.57 billion during April-November 2015-16, despite surging imports.

This has been in part due to a reversal in the declining trend in exports and a decline in the country's overall trade.

India's imports during November 2016 stood at $33.02 billion (Rs223,289.57 crore), showing a 10.44 per cent increase in dollar terms and 12.96 per cent increase in rupee terms over the imports valued at $29.90 billion (Rs197,666.37 crore) in November 2015.

The cumulative value of imports for the period April-November 2016-17 stood at $241.10 billion (Rs16,15,510.92 crore) against $263.31 billion (Rs1,698,957.27 crore) registering negative growths of 8.44 per cent in dollar terms and 4.91 per cent in rupee terms over the same period last year.

Exports during November 2016 stood at $20.01 billion (Rs135,315.19 crore), showing a growth of 2.29 per cent in dollar terms and a 4.63 per cent rise in rupee terms compared to exports valued at $19.56 billion (Rs129331.11 crore) during November 2015.

The cumulative value of exports during April-November 2016-17 stood at $174.92 billion (Rs11,71,733.68 crore) against $174.74 billion (Rs11,27,542.80 crore), showing a growth of 0.10 per cent in dollar terms and a 3.92 per cent growth in rupee terms over the same period last year.

Non-petroleum exports in November 2016 were valued at $17.60 billion against $17.23 billion in November 2015, an increase of 2.1 per cent. Non-petroleum exports during April-November 2016-17 were valued at $155.71 billion compared to $152.92 billion for the corresponding period in 2015, an increase of 1.8 per cent.

Oil imports during November 2016 were valued at $6.84 billion, which was 5.89 per cent higher than oil imports valued at $6.46 billion in November 2015. Oil imports during April-November 2016-17 were valued at $53.28 billion, which was 13.51 per cent lower than the oil imports of $61.60 billion in the corresponding period last year.

Non-oil imports during November 2016 were estimated at $26.18 billion, which was 11.70 per cent higher than non-oil imports of $23.44billion in November 2015.

Non-oil imports during April-November 2016-17 were valued at $187.83 billion, which was 6.89 per cent lower than the level of such imports valued at $201.72 billion in April-November 2015-16.