NEW DELHI: India’s trade gap continued to widen in June as higher gold and oil imports overshadowed the tenth straight month of export growth.
A rise in import shot up the country’s trade deficit to $12.96 billion in the month under review from $8.11 billion in June 2016, according to data released by the commerce ministry. However, the deficit narrowed from a 30-month high of $13.8 billion in May.
Exports rose in June, growing 4.4 per cent to $23.5 billion compared to the same month a year ago. The growth in exports was led by a 14.8 per cent rise in the value of engineering goods shipped overseas to $5.9 billion.
Imports, too, rose 19 per cent over last year to $36.5 billion as inbound gold shipments doubled from last year to $2.4 billion. Gold imports have been on the rise since February after a slowdown during demonetisation. India is among the top two consumers and the demand remains high as it is widely gifted at weddings and during festivals.
Oil import was valued at $8.12 billion in the month, an increase of 12.04 per cent over the same in June 2016. Prices of the benchmark Brent crude oil declined 3.2 per cent in June compared to last year. Oil imports, like gold, have been rising throughout the year.
Exports of petroleum products grew 3.6 per cent to $2.6 billion. Exports of gems and jewellery, one of the highest contributors to India’s shipments, fell 2.7 per cent to $3.4 billion.