I ndia’s merchandise trade deficit declines by around 3 per cent to $24.16 billion in August from $24.86 billion in the same month last year, Commerce Secretary Sunil Barthwal said on Friday.
A lower trade deficit is good news as it leads to a strengthening of the rupee. And bolsters the macroeconomic fundamentals of the economy.
The official trade figures compiled by the Commerce Ministry show that merchandise exports stood at $34.48 billion in August up from $32.25 billion in July. However, imports during August were also higher at $58.64 billion compared to $52.92 billion in the previous month.
However, exports fell when compared year-on-year as they had touched the $37.02 billion mark in August last year. Barthwal said that lower prices of petroleum goods were responsible for the dip in overall exports.
The slowdown in global markets declines has also been a factor as exports to the US, India’s largest. Trade partner, have fallen to $31.55 billion in August from $35.15 billion in the same month last year.