Rise in exports after 18-month gap narrows trade deficit to $8 billion

The trade deficit narrowed to $8.11 billion (approximately Rs 53,993.7 crore) in June 2016 compared with $10.82 billion (approximately Rs 72,029.3 crore) a year ago, a 33.4% decline in the deficit.

This was mainly due to the rise in exports for the first time after a gap of 18 months. Exports in June 2016 have recorded a positive growth of 1.27%, according to Ministry of Commerce and Industry.

During June,2016 exports were valued at $22,572.30 million (Rs 1,51 lakh crore) which was 1.27% higher in dollar terms (6.72% higher in rupee terms) than the level of $ 22,289.43 million (Rs 1,42 lakh crore) during June 2015.

Non-petroleum exports have recorded a positive growth of 3.06% in June 2016, higher than the 1.01% growth achieved in May 2016.

The growth in exports have fallen for USA (-7.44%), Japan (-2.23%), China (-1.79%) but European Union exhibited positive growth (4.33%) for April 2016 over the corresponding period of previous year as per latest WTO statistics.

Imports during June 2016 were valued at $30,688.54 million (Rs 2,06 lakh crore) which was 7.33% lower in dollar terms and 2.35% lower in rupee terms over the level of imports valued at $33,116.55 million (Rs 2,11 lakh crore) in June 2015.