Trade deficit shrunk to a five-month low of $13.98 billion in September as compared to $17.4 billion in August, data released by the government showed on Monday. The overall trade deficit stood at $94.32 billion in the first six months of the current fiscal.
However, India's exports entered negative zone after five months, declining 2.15 per cent in September on a yearly basis. Exports were on the rise since April, after declining by 0.66 per cent in March 2018.
Meanwhile, imports went up by 10.45 per cent in September. The increase works out to be 16.16 per cent during April-September period of 2018-19 financial year.
The trade deficit is the gap between imports and exports.
The development may come in as a relief for the government which is already facing a rupee slide.
In September, the Centre had hiked customs duty on 19 items including air conditioners, refrigerators, washing machines, footwear, ATF, etc.
The customs duty on electronic goods and telecom equipment was also hiked to 20 per cent from the 10 per cent earlier this month.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today