Exports Surge 2.25% in July, trade deficit narrows to $13.43 billion
India’s merchandise exports rebounded and grew 2.25% in July, aided by higher shipments of organic goods, drugs and pharmaceuticals, while imports shrank, narrowing the trade deficit.
Exports had slumped 9.71% in June on the back of intensifying trade tensions between the US and China. The government has started work on measures to boost exports, including a new export promotion scheme.
Growth in exports shows resilience of the Indian exporting community even during such tough times and sluggishness in the global economy, said Sharad Kumar Saraf, president of the Federation of Indian Export Organisations. He added that sluggish global demand and uncertainties emanating from the tariff war are clearly visible in the slowdown of exports globally.
India’s exports increased to $26.3 billion in July from $25.75 billion a year earlier, data released by the commerce department showed on Wednesday. Imports declined 10.4% to $39.76 billion last month from $44.39 billion in July 2018. This resulted in the trade deficit narrowing to $13.43 billion from $18.63 billion a year earlier.