India’s Foreign Trade

Why in news?

RBI released a data on the condition of Indian foreign trade

What is the situation?

I. Merchandise Trade

1. Exports

• In consonance with the revival exhibited by exports in the last three months, during December, 2016 exports continue to show a positive growth of 5.72% in dollar terms and 7.79% in Rupee terms as compared to December,2015.
• Non-petroleum exports during April - December 2016-17 showed an increase of 2.2%.
• The growth in exports is negative for USA (-1.21%), China (-7.45%) and EU (-6.27%) but exhibited positive growth in case of Japan (3.79%) for October 2016 over the corresponding period of previous.

2. Imports

• Imports during December 2016 were 0.46% higher in Dollar terms and 2.43% higher in Rupee terms over the level of imports in December, 2015.
• Oil imports during April-December, 2016-17 was 10.76% lower than in the corresponding period last year.
• Non-oil imports during April-December 2016 were 6.42% lower than previous year.

II. Trade in Services

Exports i.e Receipts during November registered a positive growth and imports i.e Payments during the period also increased as compared to negative growth of 7.51% during October 2016.

III. Trade Balance

• The trade balance in both merchandise and Services i.e. net export of Services for November, 2016 was estimated to be lower than that of previous year.
• Also the overall the trade balance has improved. Taking merchandise and services together, overall trade deficit for April- December 2016-17 is 36.78% lower in Dollar terms than the previous year.

Category: Mains| GS-III| Economy

Source: PIB