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India’s goods exports in July posted a marginal growth of 2.25 per cent (year-on-year) to $26.33 billion as out-bound shipments from major sectors such as petroleum, gems and jewellery, engineering goods and leather registered a decline.
Trade deficit during the month shrank significantly to $13.43 billion from $18.63 billion in July 2018 as imports contracted 10.43 per cent to $39.76 billion.
The fall in imports was largely due to a sharp decline in the petroleum sector (22 per cent), gold (42 per cent) and pearls, precious and semi-precious stones (31 per cent).
The small growth in exports in July 2019 followed a 9.71 per cent decline in June 2019 to $25.01 billion.
“To some extent this export growth is partially on account of the rupee which has depreciated approximately by 3.5 per cent in the past six weeks which gives an impetus for short-term export gains,” pointed out Mohit Singla, Chairman, Trade Promotion Council of India.
Overall, exports in April-July 2019-20 contracted 0.37 per cent to $107.41 billion, prompting exporters to ask for government support.
“Global headwinds and domestic constraints continue to impair India’s exports, as is evident from subdued expansion of 2.25 per cent in July, but the shipments in the engineering sector, which is labour-intensive and MSME driven, have slipped into negative. There is an urgent need for an effective intervention and relief from the government and RBI for exporters,” said Ravi Sehgal from the Engineering Export Promotion Council.
Imports for the period April-July 2019-20 fell 3.63 per cent to $166.80 billion. Trade deficit in the period declined to $59.39 billion compared to $65.27 billion in the comparable period last fiscal.
Consumer durable and consumer non-durable goods such as electronic goods, pharmaceuticals, marine and textiles have outperformed the overall export growth of 2.25 per cent in July 2019, which is good news for exporters, Singla said.
“This shows that Indian products have started gaining acceptability at global market,” he added.
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