Exports grow by 17.86% in October due to base effect; trade deficit widens
New Delhi: India’s exports rose by 17.86 percent to USD 26.98 billion in October mainly due to the low base effect even as trade deficit widened to USD 17.13 billion, according to the commerce ministry data.
The exports on monthly basis were down compared to USD 27.95 billion in September.
Imports during October also rose by 17.62 percent to USD 44.11 billion, leading to widening of trade deficit to USD 17.13 billion.
The deficit widened despite a steep decline of 42.9 percent in gold imports to USD 1.68 billion during the month under review.
The trade gap was USD 14.61 billion in October 2017.
Exporters attributed close to 18 percent growth in exports in October to a favourable base effect, as the foreign shipments in the comparable month of the previous fiscal were quite low at USD 22.89 billion.
The Federation of India Export Organisations (FIEO) said that exports in October last year were even lower than that of September this year.
Base effect is responsible for the high growth in October, it said.
Sharing similar views, Engineering Export Promotion Council of India (EEPC) said that high growth in October has come about on the back of a favourable base effect. FIEO President Ganesh Gupta demanded for augmenting the flow of credit as the sharp decline does not augur well for the sector.
The sectors which recorded healthy growth in October includes petroleum (49.3 percent), engineering (8.87 percent), chemicals (34 percent), pharma (13 percent), and gems and jewellery sector (5.5 percent).
On the other hand, exports of several agri commodities recorded negative growth and that includes coffee, rice, tobacco, cashew and oil seeds.
During the April-October period of the current fiscal, exports grew by 13.27 percent to USD 191 billion.
Imports were up by 16.37 percent to USD 302.47 billion, leaving a trade deficit of USD 111.46 billion during the first seven months of the current fiscal. It was USD 91.28 billion in April-October 2017-18.
Oil imports in October increased by 52.64 percent to USD 14.21 billion. The non-oil imports rose by 6 percent to USD 29.9 billion in the month.
Oil imports during April-October this fiscal increased by 50.48 percent to USD 83.94 billion.