India’s exports decline 12.66% to $22.70 bn in August; fiscal deficit at 5-month high

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The country's imports declined 26 percent to $29.47 billion in August and as a result, the trade deficit now stands at $6.77 billion

India’s exports declined 12.66 percent to $22.70 billion in August mainly due to fall in the shipments of petroleum, leather, engineering goods and gems and jewellery items, said a government data on Tuesday.

The country exported goods worth $23.6 billion in July 2020 and $25.9 billion in August 2019, according to the Ministry of Commerce & Industry.

The dip in exports and the rise in imports as compared to the figures of the previous month helped expand the fiscal deficit to a five-month high in the month of August, reported Financial Express.

On the other hand, the country's imports declined 26 percent to $29.47 billion in August as well. With this, the trade deficit now stands at $6.77 billion in August as compared to a shortfall of $13.86 billion during the corresponding month the previous year. The trade deficit was $4.8 billion in July 2020.

In August, oil imports declined by 41.62 percent to $6.42 billion as the economic activities are yet to gain pace despite relaxing the lockdown norms in phases.

Gold imports more than doubled to $3.7 billion in August this year as against $1.36 billion in August 2019. During the April-August period, exports declined by 26.65 percent to $97.66 billion, while imports fell 43.73 percent to $118.38 billion.

Trade deficit during the period stood at $20.72 billion.

 

With inputs from Agency

Image credit: The Indian Express

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