India's Exports Growth Strengthens in September

India's Exports Growth Strengthens in September

Exports climbed 25.67 per cent in September, exceeding an 18.1 per cent increase in imports, helping to narrow the trade deficit to $8.98 billion from $9.07 billion in September 2016. "Exports grow by 25.6% in September 2017 as compared to September 2016".

New data released by China's General Administration of Customs on Friday showed that bilateral trade had reached $62.48 billion after nine months of the year, up 20 per cent year-on-year. This was in expected lines, as Gold imports had more than doubled in July, due to the arrival of some delayed shipments booked ahead of the implementation of goods and services tax on the first of last month.

"Continued improvement in the pace of growth of merchandise exports, as well as its fairly broad-based nature, suggest that concerns that arose after the transition to GST may be receding in some sectors", said Aditi Nayar, principal economist at ICRA. The high growth recorded by some of the major export groups may be related to rising commodity prices.

"We need to see if the trend continues for the next quarter and whether this growth trend will be maintained".

Segment-wise, the data showed that India's oil imports during September increased by 18.47 per cent to $8.19 billion, from $6.91 billion in the same month a year ago.

In September, exports of engineering goods (44.2%), gems and jewellery (7.1%), petroleum products (39.7%), chemicals (46.1%), ready-made garments (29.4%), and drugs and pharmaceuticals (14.7%) grew at a brisk pace. Since 13 September, petrol price in Delhi had risen by 50 paise per litre, and was at Rs 70.88 per litre in the capital as on October 3rd.

Consequently, the trade deficit for April-September widened to $43.81 billion from $16.47 billion reported for April-September 2016-17. Oil and non-oil imports grew 18.5 per cent and 18 per cent to $8.18 billion and $29.4 billion, respectively.