Exports rises by nearly 10%; trade deficit widens in October

India's exports during the month of October increased by 9.59% to $23512.7 million, or Rs 1,56,941.86 crore as compared to $21456.11 million, or Rs 1,39,589.17 crore during October, 2015, Ministry of Commerce & Industry said on Tuesday.

Imports during October, 2016 were valued at $ 33673.53 million, or Rs 2,24,763.10 crore which was 8.11% higher in Dollar terms and 10.91% higher in Rupee terms over the level of imports valued at $31148.33 million, or Rs 2,02,644.79 in October, 2015. 

The growth in exports for USA (0.20%), EU (5.78%), Japan (10.03%) but China exhibited negative growth (-3.01%) for August 2016 over the corresponding period of previous year as per latest WTO statistics, the Ministry said.

On cumulative basis, the value of exports for the period April-October 2016-17 was $154913.20 million, or Rs 10,36,417.49 crore as against $1,55,179.35 million, or Rs 9,98,211.69 crore in October 2015-16, registering a negative growth of 0.17% in Dollar terms and positive growth of 3.83% in Rupee terms.

However, the cumulative value of imports for the period April-October 2016-17 was $208083.15 million, or Rs 13,92,221.35 crore as against $2,33,417.95 million, or Rs 15,01,290.90 crore registering a negative growth of 10.85% in Dollar terms and 7.27% in Rupee terms over the same period last year.

"Oil imports during October, 2016 were valued at $7141.48 million which was 3.98% higher than oil imports valued at $6868.28 million in the corresponding period last year. Oil imports during April-October, 2016-17 were valued at $46438.65 million which was 15.78% lower than the oil imports of $55139.39 million in the corresponding period last year", the Ministry said.

Moreover, for the Merchandise, the trade deficit for April-October, 2016-17 was estimated at $53169.95 million which was 32.04% lower than the deficit of $78238.60 million during April-October, 2015-16.

As per RBI’s release, the trade balance in Services (i.e. net export of Services) for September, 2016 was estimated at $5,469 million. The net export of services for April- September, 2016-17 was estimated at $32358 million which is lower than net export of services of $34042 million during April- September, 2015-16. 

Overall the trade balance has improved. Taking merchandise and services together, overall trade deficit for April- October 2016-17 is estimated at $20811.95 million which is 52.91% lower in Dollar terms than the level of $44196.60 million during April-October 2015-16, the Ministry added.