India's October trade deficit widens to near three-year high of USD 14.02 billion

India's trade deficit widened to $14.02 billion in October, its highest since November 2014, from $8.98 billion in the previous month, government data showed on Tuesday.

Published: 14th November 2017 05:32 PM  |   Last Updated: 15th November 2017 07:55 AM   |  A+A-

Image for representational purpose only. (File photo | Reuters)

By Express News Service

NEW DELHI: India’s trade deficit widened to $14 billion during October 2017 against $11.13 billion in the year-ago period as exports dropped 1.12 per cent and imports grew 7.6 per cent during the reporting month.

Fall in shipments of textiles, pharmaceuticals, leather, and gems & jewellery pulled down the export by 1.12 per cent to $23 billion in October, retreating from a six-month high growth in September, trade data released on Tuesday showed.

Imports grew 7.6 per cent to $37.11 billion in October from $34.5 billion in the same period last year. Oil and non-oil imports expanded 27.89 per cent and 2.19 per cent to $9.28 billion and $27.83 billion, respectively, in October.

Data released by the commerce ministry showed that cumulative exports during April-October 2017-18 shot up by 9.62 per cent to $170.28 billion, while imports grew 22.21 per cent to $256.43 billion, resulting in a trade deficit of $ 86.14 billion.

“The fall was expected as exporters, particularly MSMEs, were facing liquidity problem to pay GST for four months in a row without getting any refund,” said Ganesh Kumar Gupta, president, Federation of Indian Export Organisations.

India’s export sector had performed well with a growth of 25.67 per cent at $28.61 billion in September, which was its highest growth in the past six months.

“Exports should be outrightly kept out of the purview of GST as paying the tax first and getting refund is cumbersome, complex and complicated affecting exports,” said Gupta.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.