Page 86 - ie2 August 2019

ECOWATCH

Merchandise trade: June 2019 ($ million)
June 2019 Growth m-o-m (%) Growth y-o-y (%)
June 2019 Apr-Jun 2019-20
Exports 25.01 -16.6 -9.71 -1.69
Imports 40.29 -11.2 -9.06 -0.29
Trade deficit 15.28 -0.5 -8.0 2.3
Source: Ministry of Commerce, Govt of India

India's merchandise trade – June 2019

40
31.58 29.26 Jun - 18
30 27.7 25.01 Jun - 19

20
12.73 11.03
$ billion 10

0
Exports Oil Imports Non-Oil Imports Trade Blance
-10

-16.60
-20 -15.28

Source: Ministry of Commerce, Govt of India; EEPC Research
Balance of payments

Key features of India’s BoP during January-March of 2018-19
• India’s current account deficit (CAD) at trade deficit at $35.2 billion as compared mercial borrowings to India increased to
$4.6 billion (0.7 percent of GDP) in Q4 of with $41.6 billion a year ago. $7.2 billion in Q4 of 2018-19 from $1 bil-
2018-19 narrowed from $13 billion (1.8 • In the financial account, net foreign di- lion a year ago.
percent of GDP) in Q4 of 2017-18 and rect investment at $6.4 billion in Q4 of • In Q4 of 2018-19, there was an accretion
$17.7 billion (2.7 percent of GDP) in the
preceding quarter. 2018-19 remained at the same level as in of $14.2 billion to the foreign exchange
• The contraction of the CAD on a y-o-y Q4 of 2017-18. reserves (on BoP basis) as compared with
basis was primarily on account of a lower • Net inflow on account of external com- $13.2 billion in Q4 of 2017-18.
BoP during 2018-19

• The CAD increased to 2.1 percent of GDP in 2018-19 from 1.8 percent in 2017-18 on the back of widening of the trade deficit.
• Trade deficit widened to $180.3 billion in 2018-19 from $160 billion in 2017-18.
• Net FDI inflows at $30.7 billion in 2018-19 were marginally higher than $30.3 billion in 2017-18.
• In 2018-19, there was a depletion of $3.3 billion of the foreign exchange reserves (on a BoP basis).

86 l INDIAN ENGINEERING EXPORTS l AUGUST 2019