Merchandise exports slipped 9.71 per cent year-on-year in June to $25.01 billion, owing to a drop in shipments of petroleum products, rice, engineering products and gems and jewellery. In June 2018, the country exported goods worth $27.70 billion. Despite this, goods trade deficit narrowed nearly eight per cent to $15.28 billion from $16.60 billion during the corresponding period last year, according to data released by the Commerce Ministry on Monday. Imports, too, shrank in June by 9.1 per cent YoY to $40.29 billion from $44.30 billion in June 2018. While, exports of petroleum products dropped nearly 33 per cent to $2,732.35 million from $4,068.99 million in June 2018, shipment of engineering goods, now worth over $6,564 million, witnessed a decline of 2.65 per cent from over $6,743 million. Exports of gems and jewellery dropped nearly 11 per cent to around $3,133 million from around $3,507 million in June 2018. Rice exports dropped 28.05 per cent, cotton yarn, fabrics and made-ups by 19.73 per cent, readymade garments by 9.18 per cent and organic and inorganic chemicals by 8.17 per cent. At the same time, exports of iron ore increased over 150 per cent to $217.25 million from $85.25 million in June 2018. The value of electronic goods exported also increased nearly 44 per cent to $932.04 million from $648.22 million in the same period. Drugs and pharmaceuticals exports also increased over 16 per cent to $1,836.50 million from $1,580.83 million. India is estimated to have clocked in overall merchandise and services exports worth $44.46 billion last month, a 0.27 per cent decline over June 2018. The cumulative value of overall goods and services exports during April to June 2019 grew 3.14 per cent to an estimated $137.26 billion. According to the government, the decline in exports is due “in large part” to a base effect arising from the country experiencing an “extraordinarily good month” in June 2018. “While the average exports in the month of June have been $ 22-23 billion since 2015-16, the exports in June 2018 were relatively quite high at $27.70 billion,” it said in a release. “The negative growth in June 2019 is also consistent with certain global trends, which have impacted India’s exports in recent months,” it added. The World Bank in its Global Economic Prospects (June 2019) has projected weakening of global trade in 2019, forecasting a growth of 2.6 per cent-a full percentage point below their previous forecast, according to the ministry. According to Federation of Indian Export Organisations (FIEO) president Sharad Kumar Saraf, such a de-growth is a reflection of sluggish global demand and rising tariff wars between countries like the US and China. Softening of crude and steel prices also pulled down exports, according to him.
