India's Exports Up 20% in April; Trade Deficit Widens to Over $13 Billion

India’s merchandise exports grew in double digits for the third consecutive month in April, signalling a sustained recovery in global demand, as a three-fold jump in gold imports bumped up the trade deficit.

Data released by the commerce ministry on Monday showed that exports grew 19.77% in the first month of the financial year while imports rose 49.07%, leaving a trade gap of $13.2 billion.

China’s exports and imports both slowed to grow at 8% and 11.9% respectively in April.

The World Trade Organisation last month said global trade in goods is expected to grow 2.4% in volume terms in 2017 but could also slow to 1.8% if the “uncertainty” about overall macro-economic and trade policies persists across major industrialized nations.

Among 29 major commodities, only seven items of export items and two import items contracted in April.

Petroleum products (48.77%) and engineering goods (28.21%) continued to drive India’s exports in the month. Gems and jewellery (15.01%), chemicals (24.01%) and readymade garments (31.72%) also saw significant jump in shipments.

Among imports, apart from gold (up 211%), vegetable oil (37.95%), coal (94.92%), petroleum products (30.12%), chemicals (34.81%), pearls (51.74%), machinery (37.43%), transport equipment ( 30.11%) and electronic goods (74.12%) surged.

Services exports rose in March by 8.57% to $14.2 billion (against a 3.76% contraction in February) while services imports increased 14.26% to $8.3 billion. Net services exports totalled $5.9 billion.

Net services exports in the 2016-17 financial were $65.2 billion, lower than the net exports of $69.4 billion in the previous year.

In the full financial year, merchandise exports rose 4.71% and merchandise imports contracted 0.17%, leaving a trade deficit of $107.5 billion. Taking merchandise and services together, the overall trade deficit for the year to March was estimated at $ 40.5 billion, 21.7% lower than in the previous year.