Exports up 6.7% despite US tariff shock

INDIA'S MERCHANDISE EXPORTS grew 6.74% on year to $36.38 billion in September despite a 50% extra tariff on its exports to the US coming into effect in late August.

- MUKESH JAGOTA

The better-than-expected growth in outward shipments could be attributed to a pickup in some other markets, a weak base (-2.8%), and stellar show by some sectors such as electronics.

Exports to the US fell to $5.43 billion in September from $6.87 billion in August; that was a sequential decline of 21%.

Many of the export consignments that left Indian shores just before the 50% took effect may have also contributed to exports growth.

Imports during the month also showed a substantial growth of 16.66% to $69.53 billion, taking the trade deficit in September to $32.15 billion, a 13-month high. But imports growth was partly due to a surge in gold imports and a low base (-14%).

Because of the front-loading of shipments, in April-September exports to the US grew 13.35% to $45.82 billion.