India’s exports decline by less than half a per cent; gold import cools

India's goods exports for the month of August have come in at almost identical figures as compared to the year ago period, with more than half of the export goods sector witnessing signs of growth, courtesy low base and improving demand environment for domestic merchandise.

On the positive side, imports have seen a sharp decline in August, which was primarily led by fall in gold imports. An improving export and declining imports helped in reducing the trade deficit. Trade deficit shrank to USD 7.67 billion in August from USD 12.4 billion in the month of May but almost fell flat when compared to July. Gold imports declined by almost 77.4 per cent to USD1.1 billion in last month. 

Exports in August were at USD 21.51 billion as against USD 21.58 billion in the year ago period while imports declined 14 per cent to USD 29.1 billion from USD 33.9 billion, according to the data by commerce and industry ministry. 

Non-petroleum imports contracted 15.6 per cent, while oil imports shrank 8.47 per cent.

The trade numbers augur well for the economy as gold demand continues to remain in check, whereas exports show signs of bottoming out. Going ahead, due to festival and marriage season demand rise we might see the gold import figure pick up from these levels.