India had good news on the foreign trade front as exports continued to grow fast, overtaking the growth in imports.
However, there was no relief from continued trade deficit as the absolute import figure was substantially higher than exports.
Exports during November 2017 rose 30.55% in dollar terms when compared with the same month last year.
Exports during November 2017 are valued at US $ 26195.76 million as compared to US $ 20066.26 million during November 2016. In Rupee terms, exports were valued at Rs. 169912.50 crore as compared to Rs. 135699.47 crore during November,2016, registering a rise of 25.21 per cent.
Imports rose 19.6% to $40,024.96 million (Rs 259612.29 crore). Imports were higher by 14.73% in rupee terms.
The above numbers include only merchandise exports and imports, and not those of services such as IT and BPO.
As a result of the higher import number, the trade deficit for November 2017 was estimated at US $13,829.20 million as against the deficit of US $ 13,395.61 million during November 2016.
YEAR SO FAR
Cumulative value of exports for the period April-November 2017-18 was US $ 196,482.31 million (Rs 12,67,771.18 crore) as against US $175,410.66 million (Rs 11,74,997.07 crore) registering a positive growth of 12.01 per cent in Dollar terms and 7.90 per cent in Rupee terms over the same period last year.
Cumulative value of imports for the period April-November 2017-18 was US $296,459.17 million (Rs.19,13,047.30 crore) as against US $243,296.85 million (Rs 16,30,199.71 crore) registering a positive growth of 21.85 per cent in Dollar terms and 17.35 per cent in Rupee terms over the same period last year.
SERVICES (OCTOBER)
As per RBI’s Press Release dated 15th December 2017), the trade balance in Services (i.e. net export of Services) for October, 2017 was estimated at US $5,452 million, which is not enough to make up for even half of the shortfall caused by the goods trade.
Exports during October 2017 were valued at US $ 14,152 million (Rs. 92103.06 Crore) registering a positive growth of 3.06 per cent in dollar terms as compared to positive growth of 0.23 per cent during September 2017.
Imports of services during October 2017 were valued at US $8,700 million (Rs. 56620.73 Crore) registering a positive growth of 2.96 per cent in dollar terms as compared to negative growth of 2.40 per cent during September 2017.
SECTORS
During November 2017, Major commodity groups of export showing positive growth over the corresponding month of last year are Engineering Goods (43.76%), Petroleum Products (47.68%), Gems & Jewellery (32.69%), Organic & Inorganic Chemicals (54.28%), and Drugs & Pharmaceuticals (13.39%).
Non-petroleum and Non Gems & Jewellery exports in November 2017 were valued at US $19,247.56 million as against US $ 15,104.42 million in November 2016, an increase of 27.43%.
Non-petroleum and Non Gems and Jewellery exports during April -November 2017-18 were valued at US $ 143528.58 million as compared to US $ 126660.74 million for the corresponding period in 2016-17, an increase of 13.32%.
Major commodity groups of import showing high growth in November 2017 over the corresponding month of last year are Petroleum, Crude & products (39.14%), Electronic goods (24.97%), Pearls, precious & Semi-precious stones (85.80%), Machinery, electrical & non-electrical (23.24%) and Coal, Coke & Briquettes, etc. (51.80%).
CRUDE OIL AND NON-OIL IMPORTS:
Oil imports during November, 2017 were valued at US $ 9550.97 million which was 39.14 percent higher than oil imports valued at US $ 6864.25 million in November 2016. Oil imports during April-November, 2017-18 were valued at US $ 65802.97 million which was 22.65 per cent higher than the oil imports of US $ 53652.71 million in the corresponding period last year.
The global Brent prices ($/bbl) have increased by 34.73 % in November 2017 vis-à-vis November 2016 as per World Bank commodity price data (The pink sheet).
Non-oil imports during November, 2017 were estimated at US $ 30473.99 million which was 14.57 per cent higher than non-oil imports of US $ 26597.62 million in November, 2016.
Non-oil imports during April-November 2017-18 were valued at US $ 230656.20 million which was 21.63 per cent higher than the level of such imports valued at US $ 189644.14 million in April-November, 2016-17.