InvestorQ : How is the merchandise trade data looking for the month of August?
prachi Patwardhan made post

How is the merchandise trade data looking for the month of August?

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sara Kunju answered.
3 months ago
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The government nowadays releases early estimates of the merchandise trade data, although the actual trade report only comes out around the middle of the month. According to the Ministry of Commerce, Indian exports for the month of Aug-21 stood at $33.14 billion. This is 45% higher compared to Aug-20, but that is more due to the weak base effect. Compared to July 2021, the exports are lower by about 2%.

There was robust demand for exports of engineering products, petroleum products and gems & jewellery. But imports also spiked sharply to a level of $47.01 billion for August, meaning that the trade deficit also spiked sharply to $13.87 billion for the month. Oil prices at above $70/bbl are a concern. But the 2 real concerns are the expected spike in gasoline demand and gold imports at $6.7 billion, not a good way to use scarce foreign exchange.

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