India’s merchandise exports grew 2.25 per cent to $26.33 billion in July from the same month in 2018, due to a boost in shipments of products like drugs and pharmaceuticals, organic and inorganic chemicals, RMG (ready-made garments) of all textiles, and iron ore, according to data released by the Commerce Ministry on Wednesday. In July 2018, the country had exported goods worth $25.75 billion.
The country’s goods trade deficit narrowed nearly 28 per cent to $13.43 billion from $18.63 billion during the same period last year. Merchandise imports had also dropped 10.43 per cent to $39.76 billion last month from $44.39 billion in July 2018. Exports of iron ore saw the highest increase, growing nearly 298 per cent to $268.94 million from $67.59 million during the same period last year. Exports of electronic goods and drugs and pharmaceuticals, now valued over $1.72 billion, grew 51.39 per cent and 21.74 per cent respectively.
Organic and inorganic chemical exports, valued around $1.89 billion now, grew 13.45 per cent, while RMG of all textiles grew around 7.06 per cent to $1.36 billion. Shipments of ceramic products and glassware as well as spices grew 37.71 per cent and 59.81 per cent respectively.
However, exports of engineering goods, now worth over $6.15 billion, dropped 1.69 per cent, while petroleum product shipments dropped as much as five per cent to $3.65 billion from $3.84 billion in July 2018.
Exports of gems and jewellery also dropped nearly 7 per cent to $2.98 billion.
“The reflection of sluggish global demand and uncertainties emanating from tariff war are clearly visible …” Federation of Indian Exports Organisation president Sharad Kumar Saraf said. “On the import front, data shows de-growth of well of 10 per cent, which has been the highest in recent months due to major reduction in imports of petroleum products, gold and pearls, precious & semi-precious stones,” he added.
India is estimated to have reduced its overall merchandise and services trade deficit by 16.35 per cent to $32.90 billion between April and July 2019 compared to $39.38 billion during the same period in 2018.