Goods exports drop 9.32% to $34.71 billion in August

Photo used for illustration purpose only.
| Photo Credit: The Hindu

India’s goods exports dropped 9.32% to $34.71 billion in August, while the import bill expanded 3.3% to $64.36 billion.

The trade deficit widened to a ten-month high of $29.65 billion, reckoned to be the second highest monthly gap in goods trade.

“Gold imports more than doubled from $4.9 billion a year ago to $10.06 billion this August. Trade deficit should not be a matter of concern for a developing economy and you should not compare the deficits of developed countries with fast growing countries like India,” said Commerce Secretary Sunil Barthwal.

“To the extent there are no foreign exchange issues, it should not matter,” he asserted.

On the spike in gold imports, Trade Ministry officials said “Gold prices have declined globally and there has also been an import duty cut. Moreover, this is the time of the year that jewellers start stocking up for the festive and wedding season.”

“The decline in value of petroleum products with oil prices dropping six dollars was a key factor for lower petroleum exports while gems and jewellery exports have been impacted by the sanctions imposed due to the Russia-Ukraine conflict that has made it difficult to procure rough diamonds,” the Commerce Secretary said.

“However, the performance of our non gems and jewellery and non petroleum exports gives us comfort that despite the clouds of uncertainty hovering globally, India is still a bright spot,” he noted.

“While the decline in petroleum prices is good for the oil import bill, which stood at $11.01 billion in August, it hurts the value of petroleum exports,” he said.