Exports rise 6.7%, imports fall 10.1%

Trade deficit in August at $26.5 bn

- FE BUREAU

INDIA'S MERCHANDISE EXPORTS rose 6.7% to $35.1 billion in August aided by a low base while imports declined by 10.1% to $61.59 billion, causing fears of a slump in domestic economic activity.

The two-way flow precipitated a trade deficit of $26.5 billion in the month, higher than the average of $23.7 billion in April-July, but still far lower than $35.64 billion witnessed in the year-ago month. During April-August, goods exports registered a modest growth of 2.5%.

Growth in exports to the US, the largest destination, slowed to a nine-month low of 7.2% in August, but was still faster than the overall shipments. In January-July, exports to the US grew by a quarter, partly due to hurried activities among exporters from various sectors to execute orders before the additional tariffs took effect.