Exports touch $27.8 b in August

The country’s exports rose at the fastest pace in three months to reach $27.84 billion in August on account of healthy growth in petroleum products, engineering, pharma, and gems and jewellery shipments.

Imports too grew by 25.41% in August to $45.24 billion due to costlier crude oil shipments.

In August, the growth rate in overseas shipments touched a three-month high of 19.21%. Earlier in May, exports had recorded a growth of 20.18%.

Trade deficit during the month narrowed to $17.4 billion as against $12.72 billion in the same month last year, according to the data released by the commerce ministry on Friday. In July, the trade deficit soared to a near five-year high of $18.02 billion. Exports of petroleum products, engineering, pharma and gems and jewellery in August rose by 43.25%, 31.81%, 28.52% and 34.76%, respectively.

Oil imports in August grew by 51.62% to $11.83 billion and non-oil imports were up by 18.17% to $33.41 billion.

Gold imports in August jumped by 92.62% to $3.64 billion. The continuous fall in the value of domestic currency appears to be helping exports.

During April-August this fiscal, the exports recorded a growth of 16.13% to $136.09 billion, while imports during the first five months of this fiscal grew by 17.34% to $216.43 billion.

Trade deficit during the period widened to $80.35 billion, as against $67.27 billion in the same period last year.

Oil imports during April-August this fiscal grew by 53.35% to $58.81 billion and non-oil imports were up by 7.84% to $157.62 billion.

The high trade deficit is one of the factors that dragged the rupee to below 70 levels.

The rupee touched an all-time low of 72.91 on September 12. On Friday, it closed at 71.84 against the dollar.