Head Lines
    Headlines
  • Telangana Assembly passes TSRTC merger Bill
  • 'Money Heist'-Inspired Cyber Criminals Arrested For Conning Noida Businessman
  • SC to monitor cases of crime against women in Manipur
  • Veg thali cost surges 28% in July amid soaring food prices
  • IIM Lucknow launches executive programme in AI for Business
  • Govt to open research park at top educational institutions to promote science & tech
  • US to send Ukraine first $200 million of arms freed by $6.2 billion 'error'
  • Reliance Retail says it is set to lead the retail industry in the coming decade
  • Karnataka High Court accepts petition challenging provisions of Real Estate Regulatory Act
  • ‘I’m doing this for Pewdiepie’: MrBeast challenges T-Series, will fight to become YouTuber with maximum subscribers

India returned in July to a trade deficit, of $4.83 billion, after posting a monthly trade surplus for the first time in 18 years in June.

The flip was propelled by year-on-year growth in imports of gold, fertilisers, edible oil and medicinal and pharmaceutical products, according to data released by the Commerce Ministry on Friday. Overall, merchandise imports declined more than 28%, a recovery from the June decline of 48%.

Exports fell for the fifth straight month, but the contraction narrowed to 10%, supported by growth in 16 out of 30 selected major commodities, especially in rice and other cereals, iron ore and oil seeds. Several employment-generating sectors such as cotton yarn and handloom, jute, carpets, ceramics and glassware also saw expansions. Exports of petroleum products and gems and jewellery, however, posted sharp declines of about 50% each.

“In an encouraging trend, exports excluding petroleum products and gems and jewellery recorded a YoY rise in July,” said Aditi Nayar, Principal Economist, ICRA Ltd. “With the imports of some diverse categories of goods recovering in July 2020 relative to the previous month” domestic demand appeared to be re-emerging, she added.

 

July’s growth in gold imports may signal that investors are looking for a safe haven amid the continuing economic uncertainty due to the COVID-19 pandemic, as well as expectations of a pick up in retail demand in the upcoming festival season.

Non-oil, non-gold imports — which can be a signal of domestic demand — fell 29%, but the contraction narrowed from June’s 41%.

comments

No Comments Till Now.

Write Your Story