India’s exports fell 6.84 per cent in July 2016 compared to July 2015. Exports have fallen across major sectors including textiles, petroleum products, engineering goods, electronic items, leather products, pharmaceuticals and agriculture produce.

Imports declined at a steeper rate of 19.03 per cent. Oil imports during July 2016 were 28 per cent lower than imports in the corresponding period last year. Imports of gold declined 63.65 per cent during the month compared to the same month last year while the fall in silver was sharper, at 80.34 per cent.

Exports for the period April to July 2016-17 were 3.62 per cent lower at 87 billion dollars compared with 90.27 billion dollars in the same period last year. Imports in the first four months of the fiscal at 113.99 billion dollars were 16.33 per cent lower than 136.25 billion dollars.

Trade deficit for April to July 2016-17 shrunk to 26.99 billion dollars compared with 45.98 billion dollars in the same period last fiscal. The trade deficit lowered to 7.76 billion dollars in July 2016 compared with 13 billion dollars in the same month last year. The decline in exports reflects the contraction in global trade. Global trade uncertainties are increasing.