Trade trouble for Modi govt: Exports, imports dip in Nov

India is verifying the reports that some Chinese goods are routed through third countries such as Singapore and Hong Kong.

India’s exports fell 0.34% to $25.98 billion in November, recording the fourth consecutive month of decline. The country’s trade deficit also dipped to $12.12 billion from $16.61% in November last year as imports shrank 12.71% to $38.11 billion, according to the trade data released on Friday.

Exports shrank in 17 of the 30 key sectors in the month with petroleum products, gems and jewellery, leather products and ready-made garments recording a fall in shipments. Total exports in the financial year till November dipped by nearly 2% to $212 billion while imports shrank by about 9% to $319 billion. During the period, trade deficit also declined to $54.06 billion compared with $82.47 billion last year.

The decline in imports is a bigger worry for the Modi government as it signifies a decline in demand in the economy. Of the 30 important sectors, Only eight recorded higher imports. Though falling crude prices were a major factor behind the decline in imports, shrinking non-oil exports will be a major worry for the government. Gold imports recorded an increase of 6.59% to $2.94 billion in November.

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