India’s exports rebounded in August after slowing down in July , helped by a recovery in global demand. The country’s exports grew 10.3 per cent to $23.8 billion last month. Imports outpaced exports and increased 21 per cent to $35.46 billion, widening the trade deficit to $11.6 billion from $7.7 billion a year earlier. Growth in outbound shipments slowed to an eight-month low in July , weighed down by appreciation in the rupee and disruptions on account of the introduction of the goods and services tax regime.
Exports of engineering goods grew 19.53 per cent, petroleum products increased 36.56 per cent, drugs and pharmaceuticals rose 4.21 per cent and readymade garments grew 0.56 per cent, according to data released by the commerce and industry ministry on Friday . “In continuation with the positive growth exhibited by exports for the last 12 months, exports during August 2017 have shown growth,“ the Ministry said in a statement. “A pickup in exports during August augurs well for Indian exporters who seem to be benefiting from a recovery in major global markets, including the key economies of the US and Europe,“ said TS Bhasin, Chairman of EEPC India. Oil imports grew 14.22 per cent to $7.75 billion in August. Cumulative exports during AprilAugust rose 8.57 per cent to $118.57 billion, while imports increased 26.6 per cent to $181.71 billion, leaving a trade deficit of $63.14 billion in the first five months of the financial year.
For the first time ever, forex exchange reserves crossed the $400-billion mark as on September 8 to reach $400.727 billion, data from the Reserve Bank of India show. The central bank took almost a decade to shore up its forex kitty by $100 billion to cross $400 billion from $300 billion. Compared with this, the RBI took just 11 months to reach the $300-billion mark in February 2008 from $200 billion of reserves it had in April 2007. Reserves rose by a whopping $2.6 billion as on September 8 from the week before. Foreign currency assets, which form a key component of reserves, rose by $2.57 billion from the previous week to $376.209 billion.