The Crossbill Team
India's exports fell by 1.48% in July, reaching $33.98 billion, representing the first contraction in three months. The drop was attributed to subdued global demand and persistent geopolitical challenges, according to data from the commerce department.
Inbound shipments to India increased by 7.46% to $57.48 billion in July, resulting in a trade deficit that reached a nine-month high of $23.5 billion. This compares to a deficit of $19 billion in July of the previous year, according to data released by the commerce department, reported Business Standard.
Commerce Secretary Sunil Barthwal informed reporters during a briefing that “there are various factors that have contributed to the decline in petroleum exports. One factor is the fall in prices. Secondly, the demand for some of the products is low. Finally, domestic consumption of petroleum products has increased, which is playing a major role in leaving less for exportable surplus.”
Barthwal added that although merchandise exports increased by 4% on a cumulative basis from April to July, the contraction in July was due to reduced exports of petroleum products, which were impacted by subdued demand and high crude oil imports.
In July, petroleum products, which account for over 15% of total exports, contracted by 22% to $5.23 billion. Conversely, imports of petroleum and crude products grew by 17.4% to $13.87 billion during the same month, Business Standard reported.
In addition to petroleum and crude products, significant import increases were observed in other categories: electronic goods (up 11.54%), non-ferrous metals (up 17.4%), iron and steel (up 5.22%), plastic materials (up 4.67%), and organic & inorganic chemicals (up 8.1%).
Inbound shipments to India increased by 7.46% to $57.48 billion in July, resulting in a trade deficit that reached a nine-month high of $23.5 billion. This compares to a deficit of $19 billion in July of the previous year, according to data released by the commerce department, reported Business Standard.
Commerce Secretary Sunil Barthwal informed reporters during a briefing that “there are various factors that have contributed to the decline in petroleum exports. One factor is the fall in prices. Secondly, the demand for some of the products is low. Finally, domestic consumption of petroleum products has increased, which is playing a major role in leaving less for exportable surplus.”
Barthwal added that although merchandise exports increased by 4% on a cumulative basis from April to July, the contraction in July was due to reduced exports of petroleum products, which were impacted by subdued demand and high crude oil imports.
In July, petroleum products, which account for over 15% of total exports, contracted by 22% to $5.23 billion. Conversely, imports of petroleum and crude products grew by 17.4% to $13.87 billion during the same month, Business Standard reported.
In addition to petroleum and crude products, significant import increases were observed in other categories: electronic goods (up 11.54%), non-ferrous metals (up 17.4%), iron and steel (up 5.22%), plastic materials (up 4.67%), and organic & inorganic chemicals (up 8.1%).
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