December trade deficit lowest in FY19 as imports shrink to three-month low

Export growth plunges to 0.32% as major sectors contract

The trade deficit in December last year fell to its lowest in the current fiscal year (2018-19 or FY19) as imports contracted for the first time. The effective trade deficit shrunk to $13.08 billion, lowest in FY19. It was $16.67 billion in November. 

On the other hand, a high base effect and falling outbound trade of big exchange earners — such as gems and jewellery, engineering goods, and pharmaceuticals — nearly wiped out export growth in December, which fell to 0.3 per cent.

This was lower than the already bottom-trawling growth rate of 0.8 per cent in November last year.