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India trade deficit touches 56-month high, exporters’ term figure as ‘alarming’

Updated: Feb 16, 2018 06:00:55am
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New Delhi, Feb 16 (KNN) Despite the country’s growth in terms of its exports, the trade deficit touched a 56 –month high in January as a result of rise in petroleum, chemicals, silver, pearls and machine tools imports, data from the Commerce and Industry Ministry revealed.

According to the data, export of engineering goods rose 15.77 percent over last year to $6.36 billion, whereas the gems and jewellery exports grew by over 0.89 percent to $3.02 billion.

With regard to organic and inorganic chemicals the exports registered positive trend by 33.60 percent to $1.61 billion.

Also the value of petroleum products exports rose in line with the higher crude prices. Outbound shipments of petroleum products went up by over 39.5 percent to $3.8 billion in January.

Exports of readymade garments fell 8.4 percent to $1.39 billion and Cotton yarn and fabric exports declined 9.6 percent to $0.84 billion.

On the other hand oil imports increased by over 42.64 per cent as well as the import of pearls and precious stones jumped by over 55.71 per cent.

Organic and inorganic chemical imports too shot a high mark of 48.43 per cent valuing at $1.79 billion.

Likewise imports of machinery, coal coke and briquettes imports rose in the analysis period.

Commenting over the latest figures, Ajay Sahai, Director General of Federation of Indian Export Organizations (FIEO) said that the trade deficit is quite alarming.

If the trends are to follow, the trade deficit would soon touch 150 billion dollar mark this year adding to the anxiety, he added.

Listing concern, he said that the imports of finished goods are on a rise since there is no incidence tax that used to exist earlier.  Also GST could be factored in as a reason for the slowdown of exports from the labour intensive sectors, FIEO said in a statement. (With PIB Inputs) (KNN/DA)

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