Exports dip by 2.15 per cent, trade deficit lowest |
The steady slide in the Indian rupee against the US dollar notwithstanding, India`s merchandise exports slipped into the negative zone for the first time this financial year, declining 2.15 per cent in September this year on an annual basis..The dip in exports has been attributed to a correction on account of the base effect and seasonal factors. Imports, however, went up by 10.45 per cent in September. This decline is entirely due to the base effect resulting from September 2017 being an abnormally high growth month of about 26 per cent due to imminent cut off then for drawbacks at pre-GST rates, the Commerce Ministry stated in its official release adding that it is a temporary, out of trend phenomenon. Exporters continue to be resurgent with their realised incomes having gone up by almost 10 per cent. October 2018 figures promise to be as per the ongoing six-month trend again.India`s trade deficit meanwhile narrowed to $13.98 billion in September from $17.4 billion in August despite high oil prices. September`s merchandise trade deficit figures are the lowest in the last five months. During the April to September period of this year, the merchandise exports exhibited positive growth of 19.93 per cent in rupee terms and 12.54 per cent in dollar terms.
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