Merchandise exports hit lowest value since March’18
For the first time in the last 9 months, India’s merchandise exports fell in June’19, by a rate of 9.71% year-on-year to US$ 25.01 billion due to sluggish global demand and the US-China tariff war. On account of the weakening of consumption, India’s imports touched US$ 40.29 billion, recording a 9% year-on-year drop.
Due to low prices, India’s oil imports registered a decline of 13.33% & stood at US$ 11.03 billion in June’19. However, there was a 13% surge in gold imports (US$ 2.70 billion) during this period. Imports of other commodities decreased 9% to US$ 26.57 billion in June’19. Overall, India’s trade deficit narrowed for the month by 8% to US$ 15.28 billion.
Weak indicators on consumption, along with lukewarm private investments also contributed to the slowest growth rate (5.8%) of the economy during January-March’19. Given these numbers, there’s a possibility that the economy could have slowed further during April-June, 2019.