Trade deficit narrows to US% 8.71 billion in October 2020
India's merchandise exports declined 5.1% to US$ 24.89 billion in October 2020 over a year ago. Meanwhile, merchandise imports also fell 11.5% to US$ 33.61 billion. The trade deficit dipped 25.9% to US$ 8.71 billion in October 2020 from US$ 11.75 billion in October 2019.Oil imports declined 38.5% to US$ 5.98 billion, while the non-oil imports fell 2.2% to US$ 27.62 billion in October 2020 over October 2019. The share of oil imports in total imports was 17.8% in October 2020, compared with 25.6% in October 2019. The price of Brent crude oil skidded 30.8% to US$ 41.30 per barrel in October 2020 over October 2019.
Among the non-oil imports, the major contributors to the overall dip in imports were transport equipment imports declining 56.3% to US$ 1.13 billion, electrical & non-electrical machinery 15.5% to US$ 2.50 billion, iron & steel 22.3% to US$ 0.99 billion, wood & wood products 26.5% to US$ 0.35 billion and coal, coke & briquettes etc 6.5% to US$ 1.51 billion, while imports of artificial resins, plastic materials, etc also slipped 7.5% to US$ 1.12 billion, professional instrument, optical goods etc 11.9% to US$ 0.36 billion, organic & inorganic chemicals 2.9% to US$ 1.57 billion and non-ferrous metals 2.3% to US$ 1.07 billion.
However, the imports of electronic goods moved up 16.1% to US$ 5.54 billion, pearls, precious & semi-precious stones 50.5% to US$ 2.29 billion, gold 35.9% to US$ 2.50 billion, fertilisers, crude & manufactured 46.3% to US$ 1.13 billion, medicinal & pharmaceutical products 13.4% to US$ 0.60 billion, vegetable oil 7.3% to US$ 1.02 billion, metaliferrous ores & other minerals 4.8% to US$ 0.40 billion and chemical material & products 2.0% to US$ 0.62 billion in October 2020.
On exports front, the drugs & pharmaceuticals recorded a surge in exports by 21.9% to US$ 2.08 billion, followed by rice 113.6% to US$ 0.69 billion, iron ore 74.1% to US$ 0.34 billion, and ceramic products & glassware 34.9% to US$ 0.30 billion. The exports also moved up for RMG of all textiles by 6.3% to US$ 1.18 billion, spices 21.9% to US$ 0.33 billion and meat, dairy & poultry products 16.7% to US$ 0.40 billion.
Further, the exports increased for cotton yarn/fabrics/made-ups, handloom products etc. By 6.7% to US$ 0.91 billion, organic & inorganic chemicals 1.9% to US$ 1.81 billion, mica, coal & other ores, minerals including processed minerals 9.6% to US$ 0.33 billion and handicrafts excluding handmade carpet 11.4% to US$ 0.18 billion in October 2020.
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However, exports for petroleum products declined 52.0% to US$ 1.65 billion, gems & jewellery 21.3% to US$ 2.93 billion, engineering goods 3.7% to US$ 6.22 billion, electronic goods 9.4% to US$ 0.97 billion, leather & leather products 16.7% to US$ 0.32 billion, marine products 8.1% to US$ 0.68 billion, man-made yarn/fabrics/made-ups etc. 12.8% to US$ 0.36 billion, and plastic & linoleum 6.9% to US$ 0.60 billion in October 2020.
Merchandise exports in rupees fell 1.9% to Rs 182846 crore, while imports dipped declined 8.5% to Rs 246857 crore in October 2020 over October 2019. The trade deficit eased to Rs 64011 crore in October 2020 compared with Rs 83495 crore in October 2019.
India's merchandise exports fell 19.1% to US$ 150.14 billion, while merchandise imports declined 35.4% to US$ 182.29 billion in April-October 2020. The decline in imports was driven by a 49.0% fall in oil imports to US$ 37.84 billion. India's merchandise trade deficit eased to US$ 32.16 billion in April-October 2020 from US$ 96.68 billion in April-October 2019.
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