Engineering goods and textiles continued to be under pressure amid a global economic slowdown, although refined petroleum and drugs improved their performance. Electronics exports have also been holding out.
This is the Daily Edit from the economic times. It's September 5, and we put the focus on trade winds in the doldrums. Merchandise trade may have reached a point of inflection with exports imports and the trade deficit, all declining from recent peaks. official figures released for August last week show exports at $33 billion declining after revise data for July set right. A marginal contraction inputs also posted their first sequential decline during the month at 61 Point $68 billion, while the trade deficit is $28.68 billion from $31.02 billion in July. Exports shrank 1.15 percentage in August over the same month a year ago. Imports on the other hand, continued to block strong growth rates at 36.78. percentage in the five months of this fiscal year. imports have grown 45.64 percentage year on year to $317.81 billion dollars, while exports have clocked 17 point 12 percentage to 192 point $59 billion. With the trade deficit more than doubling to 120 $5.2 billion. Engineering goods and textiles continued to be under pressure amid a global economic slowdown. Although refined petroleum and drugs improved their performance electronics exports have also been holding out crude oil and coal imports kept up the eye watering pace, but gold imports were down sharply inbound shipments of machinery indicators of the demand recovery underway in India grew marginally slower than in the prior month. The government expects its full year merchandise exports target of four $50 billion to be met and the widening of the current account deficit see ad during the fiscal year is seem to be within manageable levels. The rupee will however, keep trending down if it continues to track trade fundamentals as capital flows seek refuge in advanced economic debt. Expectations are rising about a set of trade facilitation measures to get around the adverse external environment. India has done well in merchandise trade to improve market access and incentives to manufacturing as the global economy emerged from the clutches of the COVID 19 pandemic. A policy push at this juncture could be a walk around for a controlled currency depreciation. You have been listening to Roopsha Dasguupta, tune into et play Economic Times latest platform for all audio content.