| Date: |
19-04-2016 |
| Subject: |
India’s trade deficit at a record low of $5 billion in March |
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New Delhi: A sharp decline in the gold imports helped narrow India’s trade deficit to a record low, as merchandise imports contracted faster than exports in March amid tepid global demand.
Data released by the Union commerce ministry showed that while merchandise exports contracted for the 16th straight month by 5.47%, merchandise imports shrank 21.56%, leading to a trade deficit of $5 billion in March. During the same month, China’s exports grew by 11.5%, breaking the declining trend, and imports contracted 7.6%, leaving that country with a trade surplus of $29.9 billion.
India’s exports fell 15.9% to $261.1 billion in 2015-16 while imports contracted by 15.3% to $379.6 billion. The trade deficit for the year was $118.5 billion.
Aditi Nayar, senior economist at ratings agency Icra Ltd, said that the halving of the merchandise trade deficit in March from a year ago was predominantly on account of a sharp decline in gold imports following the jewellers’ post-budget strike as well as lower net oil imports led by both a fall in price and volumes.
“Although non-oil, non-gold imports contracted in March 2016, the healthy growth in imports of some items, such as transport equipment and electronic goods, signals a nascent uptick in domestic investment and consumption demand,” she added.
Gold imports declined 80.5% to $973 million in March.
Source : livemint.com
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