Trade Deficit Widens To Record High In October

India's merchandise deficit spiked to a record high in October, led by surge in imports.

The merchandise trade deficit rose to $31.46 billion in October as compared with $19.4 billion in September, according to a press briefing held by the Ministry of Commerce and Industry on Wednesday.

• Exports rose by 6.2% annually to $33.57 billion in October.

• Imports increased by 12.3% annually to $65 billion.

• Exports fell by 2.6% on a sequential basis, while imports rose by 20.8%.

Key Export Items

• Exports of engineering goods stood at $8.1 billion, 7.2% higher year-on-year.

• Petroleum product exports were at $6 billion, 4.65% lower than a year earlier.

• Gems and jewellery exports were at $3 billion, 9.8% lower on an annual basis.

• Organic and inorganic chemical exports were at $2.1 billion, 1.05% lower on an annual basis.

• Drugs and pharmaceutical exports were at $2.4 billion, 29.3% higher from over a year earlier.

Key Import Items

• Petroleum, crude, and product imports were up 8.1% from a year ago at $17.7 billion.

• Organic and inorganic chemical imports were at $2.4 billion, 4.5% lower on an annual basis.

• Imports of coal, coke, and briquettes were 4.5% higher than a year ago at $3.3 billion.

• Imports of electronic goods were at $7.8 billion, 26.3% higher over a year earlier. 

• Machinery, electrical and non-electrical goods were at $4.3 billion, up 17.6% over the previous year.  

• Gold imports stood at $7.2 billion, 95.4% higher than a year ago.

Geopolitical tensions and demand slowdown in major advanced economies continue to be a matter of concern for the exporting community, said Arun Kumar Garodia, chairman of the Engineering Export Promotion Council.

Free trade pacts with the U.K. and the EU, if concluded sooner, could provide impetus to engineering exports from the country, he said. The FTAs with Australia and the UAE have helped boost engineering exports, Garodia said.