India’s April-August trade deficit sees negative growth at $73.37 bn

India saw the first negative growth in trade deficit in recent times with an estimated deficit of $73.37 billion in April-August 2013-14, against a shortfall of $74.67 billion in the April-August 2012-13.

The country's trade deficit narrowed to $10.9 billion in August, helped by a double-digit rise in merchandise exports, provisional government data released yesterday showed, offering some respite for the troubled rupee.

Merchandise exports from the country rose 12.97 per cent in August to $26.14 billion year-on-year while imports fell 0.68 per cent year-on-year to $37.05 billion.

On a sequential basis, however, India's trade deficit widened to an estimated $73.37 billion in the first five months of the current financial year (April-August 2013-14), although at a slower pace, on the back of the $10.92 billion deficit in August trade.

Imports during August 2013 were valued at $37.05 billion (Rs2,34,212.93 crore), showing a negative growth of 0.68 per cent in dollar terms and a growth of 12.99 per cent in rupee terms  over the level of imports valued at $37.31 billion (Rs2,07,278.42 crore) in August 2012.

Cumulative value of imports for April-August 2013-14 stood at $1,97,792.14 million (Rs11,46,140.26 crore) against $1,94,442.45 million (Rs10,62,866.95 crore) in the same period a year ago, showing a 1.72 per cent growth in dollar terms and growth of 7.83 per cent in rupee terms year-on-year.

Exports during August 2013 were valued at $26.14 billion (Rs1,65,202.15 crore), which was 12.97 per cent higher in dollar terms and 28.53 per cent higher in rupee terms compared to the level of $23.13 billion (Rs1,28,534.68 crore) during August 2012.

Cumulative value of exports for April-August 2013-14 was $124.43 billion (Rs7,24,733.44 crore) against $119.77 billion (Rs6,54,859.77 crore) – a growth of 3.89 per cent in dollar terms and a growth of 10.67 per cent in rupee terms over the same period last year.

India imported crude oil valued at $15.10 billion in August 2013, which was 17.88 per cent higher than oil imports valued at $12.81 billion in the corresponding period of the previous year.

Oil imports during April-August 2013-14 rose 5.6 per cent to $69.68 billion against oil imports of $65.98 billion in the corresponding period of the previous year.

Non-oil imports during August 2013 rose 10.4 per cent to an estimated $21.96 billion against such imports valued at $24.50 billion in August 2012.

Non-oil imports during April-August 2013-14 were valued at $128.11 billion, which was 0.3 per cent lower than the level of such imports valued at $128.46 billion in April-August 2012-13.