Trade deficit narrows to $20.78 bn in Sept

New Delhi: Snapping the two months slide, the country's merchandise exports rose marginally by 0.5 per cent to $34.58 billion in September while trade deficit narrowed to $20.78 billion. According to official data released on Wednesday, imports increased by 1.6 per cent to $55.36 billion in September compared to $54.49 billion in the year-ago period. The trade deficit, or the gap between imports and exports, was $20.8 billion during the same month last year. It soared to a 10-month high of $29.65 billion in August.

Commerce Secretary Sunil Barthwal told reporters here that exports both in September and during the first six months of this fiscal have recorded positive growth despite global uncertainties. The important drivers of exports included engineering, chemicals, plastics, pharma, ready-made garments and electronics. “We have done well despite global difficulties,”Barthwal said. Gold imports edged up to $4.39 billion in September against $4.11 billion in the same month last year.

The outbound shipments had declined by 9.3 per cent in August and 1.2 per cent in July compared to the year-ago months. Exports during April-September this fiscal increased by 1 per cent to $213.22 billion, and imports grew by 6.16 per cent to $350.66 billion. The trade deficit during the first half of the fiscal was $137.44 billion.