After demonetisation: India’s exports grew by nearly 28% in March
A more than 300% spike in gold imports left a trade deficit of more than Rs 67,000 crore.
A high demand for engineering and petroleum products pushed India’s exports up by 27.59% or $29.23 billion (Rs 1.88 lakh crore) in March. This was the second consecutive month in which exports grew strongly, with February recording a 17.5% jump from the previous month. This comes as the country’s economy recovers from the Centre’s decision to demonetise 86% of its cash in November, 2016.
Data released by the commerce ministry for the month of March stated that the shipment of petroleum goods rose by 69%, and engineering products by 47%. The overall growth in exports for the 2016-17 financial year was 4.71%, the highest in five years, according to the Hindustan Times.
However, imports in March rose by 45.25% to $39.7 billion (approximately Rs 2.55 lakh crore), leaving the trade deficit at $10.4 billion (approximately Rs 67,045 crore). This was mainly owing to a massive 329.19% jump in the export of gold, worth $4.2 billion (approximately Rs 27,079 crore).