Exports contract 6% in August, trade deficit narrows to $13.45 billion

The current account deficit is likely to decline substantially to $10-11 billion in the second quarter

Exports in August contracted for a second time in the current fiscal year as poor performance plagued all major foreign-exchange earners such as petroleum oil, gems and jewellery, and engineering goods.

Outbound trade dropped 6.05 per cent after rising by 2.25 per cent in July. According to the data released by the commerce and industry ministry on Friday, exports stood at $26.13 billion in the month.

Imports, which contracted for a third straight month, dipped by 13.45 per cent in August, the highest fall this fiscal year. Consequently, the trade deficit stood at $13.45 billion in August, the second-lowest in the first