India's exports rose 9.8 per cent during 2017-18, the highest growth rate in six years, while imports went up nearly 20 per cent as commodity prices pushed up the value of shipments in and out of the country along with a pick-up in global trade. Exports, however, dipped 0.7 per cent in March to $29.1 billion, led by a decline in shipments of gems and jewellery and petroleum products from the country. Latest data released by the commerce department showed the first decline in four months, as oil exports dropped 13 per cent, while gems and jewellery exports decline nearly 17 per cent.
During March, import growth too slowed down, rising 7 per cent to $42.8 billion, leaving a trade deficit of $13.7 billion. Trade deficit in 2017-18 was estimated to have widened to $157 billion, compared to $109 billion in 2016-17. Aditi Nayar, principal economist at the ratings agency, said, “With the expansion in imports nearly twice as high in export growth in FY2018, the merchandise trade deficit widened by 44 per cent in the just-concluded fiscal. ICRA expects the current account deficit to more than triple to $47-50 billion in FY2018 from $15 billion in FY2017.”
