A mid-year assessment of India’s exports during the first six months of this financial year released by the Ministry of Commerce & Industry shows that overall merchandise exports have grown in a healthy manner to build on the export growth seen in 2016-17 and 2017-18, rising by 19.93 per cent in rupee terms and 12.54 per cent in US dollar terms over same period last year.

Data indicates that the growth is robust and not confined to petroleum products alone, the ministry said.

Merchandise exports in September 2018 exhibited a positive growth of 9.65 per cent in rupee terms, while in US dollar terms there was a marginal negative growth of 2.15 per cent. The ministry clarified that the decline is entirely due to the base effect resulting from September 2017 being an abnormally high growth month of about 26% in US dollar terms due to the imminent cut off then for drawbacks at pre-GST rates. This is a temporary, out-of-trend phenomenon. Exporters continue to be resurgent with their realised incomes having gone up by almost 10 per cent. October 2018 figures promise to be as per the ongoing six-month trend again.

During September 2018, major commodity groups showing positive export growth over the corresponding month of last year are Petroleum Products (26.8%), Organic & Inorganic Chemicals (16.9%), Drugs & Pharmaceuticals (3.8%), Cotton Yarn/Fabs./made-ups, Handloom Products etc. (3.6%) and Plastic & Linoleum (28.2%) (all percentages in US dollar terms).

Merchandise trade deficit during April-September 2018 is US$ 94.32 billion and US$ 13.98 billion in September 2018 which is the lowest in last five months, despite high oil prices, the ministry noted.