India’s trade deficit narrows to $7.75 bn in July

India's trade deficit narrowed to $7.75 billion in July 2016, helped by a 19.03 per cent fall in monthly imports. Trade deficit for April-July 2016-17 is estimated at $27.00 billion against a deficit of $45.98 billion during April-July 2015-16.

This has been facilitated by a near halving of gold imports to $1.08 billion and a 28 per cent fall in the value of oil imports to $6.82 billion – the two major high-value items in the country's import basket - in July this year.

Merchandise exports of the country stood at $21.70 billion (Rs145,770.39 crore) in July 2016, down 6.84 per cent in dollar terms and 1.61 per cent lower in rupee terms compared to the level of $23.28 billion (Rs148,149.92 crore) in July 2015.

Cumulative value of exports for April-July 2016-17 stood $87.00 billion (Rs582,731.37 crore) down 3.62 per cent in dollar terms and a positive growth of 1.63 per cent in rupee terms against $90.27 billion (Rs573,364.73 crore) in the same period last year.

Non-petroleum exports in July 2016 were down 4.46 per cent at $19.19 billion against $20.09 billion in July 2015. Non-petroleum exports during April-July 2016 were 1.12 per cent lower at $77.90 billion against $78.78 billion during the corresponding period in 2015.

Imports into the country during July 2016 were valued at $29.45 billion (Rs197,932.93 crore), which was 19.03 per cent lower in dollar terms and 14.48 per cent lower in rupee terms compared to imports valued at $36.37 billion (Rs231,453.65 crore) in July 2015.

Cumulative value of imports for the period April-July 2016-17 stood at $114.00 billion (Rs763,687.22 crore) against $136.25 billion (Rs865,388.34 crore) in April-July 2015-16, registering a negative growth of 16.33 per cent in dollar terms and a 11.75 per cent fall in rupee terms over the same period last year.

Gold imports, which till recently was a matter of concern for the government, more than halved to $1.08 billion in July 2016.

Oil imports during July 2016 were valued at $6.82 billion, down 28.10 per cent from oil imports valued at $9.49 billion in the corresponding period last year. Oil imports during April-July 2016-17 stood at $25.67 billion, down 25.01 per cent from oil imports of $34.23 billion in the corresponding period last year.

Non-oil imports during July 2016 were estimated at $22.63 billion, which was 15.83 per cent lower than non-oil imports worth $26.89 billion in July 2015. Non-oil imports during April-July 2016-17 stood at $88.33 billion, down 13.42 per cent from such imports valued at $102.03 billion in April-July 2015-16.

Net export of services during April-June at $16.2 billion was marginally lower than $16.49 billion recorded in the corresponding period last year.

Taking merchandise and services together, overall trade deficit for April-July is estimated at $10.8 billion, which is 63.38 per cent lower from $29.5 billion year-on-year.