sree45
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NEW DELHIIndia's trade deficit narrowed to the lowest in 30 months in September as weaker oil and gold demand helped cool imports while exports accelerated.
The deficit narrowed to $6.76 billion from $17.15 billion a year earlier, Director General of Foreign Trade Anup Pujari told reporters Wednesday while releasing the data. It was at $10.9 billion in August.
"Steps taken by the government to curb imports of nonessential items, especially precious metals, have resulted in the significant fall in imports," Trade Secretary S.R. Rao, who was also present at the briefing, said.
Data show imports of gold in September fell 82% from a year earlier to $800 million while crude-oil imports dropped 5.94% to $13.20 billion. This helped reduce overall imports, which were down 18.1% on the year at $34.4 billion.
In recent months, the government has increased the import tax on gold to check demand for the metal. The central bank has also tightened rules to reduce speculative purchases by bullion dealers and taken other steps to curb demand.
While imports fell, exports rose for the third successive month. They were up 11.15% from a year earlier at $27.68 billion in September.
India's trade gap has been the key driver of its large current-account deficit$87.8 billion in the fiscal year ended March 31. That has in turn led to a sharp fall in the value of the rupee and fueled concerns over how the south Asian economy will manage to finance such a wide current-account gap once the U.S. Federal Reserve begins to unwind its easy-money policies.
The sharply narrower September trade deficit would calm some of those concerns. The steady rise in exports would also bolster expectations that growth in the south Asian economy could pick up in the coming months.
India's economy grew at a decade-low rate of 5.0% in the fiscal year ended March 31. Authorities are hoping that improving exports would help the country's ailing manufacturing sector recover.
India September Trade Deficit Narrows to 30-Month Low - WSJ.com
The deficit narrowed to $6.76 billion from $17.15 billion a year earlier, Director General of Foreign Trade Anup Pujari told reporters Wednesday while releasing the data. It was at $10.9 billion in August.
"Steps taken by the government to curb imports of nonessential items, especially precious metals, have resulted in the significant fall in imports," Trade Secretary S.R. Rao, who was also present at the briefing, said.
Data show imports of gold in September fell 82% from a year earlier to $800 million while crude-oil imports dropped 5.94% to $13.20 billion. This helped reduce overall imports, which were down 18.1% on the year at $34.4 billion.
In recent months, the government has increased the import tax on gold to check demand for the metal. The central bank has also tightened rules to reduce speculative purchases by bullion dealers and taken other steps to curb demand.
While imports fell, exports rose for the third successive month. They were up 11.15% from a year earlier at $27.68 billion in September.
India's trade gap has been the key driver of its large current-account deficit$87.8 billion in the fiscal year ended March 31. That has in turn led to a sharp fall in the value of the rupee and fueled concerns over how the south Asian economy will manage to finance such a wide current-account gap once the U.S. Federal Reserve begins to unwind its easy-money policies.
The sharply narrower September trade deficit would calm some of those concerns. The steady rise in exports would also bolster expectations that growth in the south Asian economy could pick up in the coming months.
India's economy grew at a decade-low rate of 5.0% in the fiscal year ended March 31. Authorities are hoping that improving exports would help the country's ailing manufacturing sector recover.
India September Trade Deficit Narrows to 30-Month Low - WSJ.com
