NEW DELHI: With global demand not showing any signs of a pickup, India’s merchandise exports contracted for the eighth month running in July, registering a 10.3 percent drop over last year.
The trade deficit widened to $12.8 billion in July from $10.8 billion in June, data released by the ministry of commerce and industry showed. Imports fell 10.3 percent to $35.95 billion while exports came in at $23.1 billion.
“Amidst the persisting contraction of merchandise exports on a year-on-year basis, the rise in shipments in July 2015 from the average of $22 billion in the first quarter of FY16 is a silver lining,” said Aditi Nayar, senior economist, ICRA.
In the April-July period, exports fell 15 percent over last year. India’s exports were hurt because of a stronger currency, a problem that could worsen after the yuan devaluation. Oil imports were 35 per cent lower in July over last year while non-oil imports were higher by 3.80 per cent, suggesting improving domestic demand.
