New Delhi, July 17 (IANS) India’s merchandise export growth remained strong in June at 15.5 per cent year‑on‑year ($40.4 billion) but eased on a monthly basis, a report said on Friday.
The merchandise export growth was 18 per cent in May as petroleum exports nearly halved, widening the goods trade gap, the report from Crisil Ratings said.
On the export front, agricultural shipments performed well in June, mainly on account of a supportive base.
Rice exports grew 16.5 per cent on-year, while exports of meat, dairy and poultry increased 54.6 per cent and marine products improved 14.5 per cent year on year.
The fast-growing category of other cereals grew 244.2 per cent.
The report added that gems and jewellery exports surged 34.6 per cent while core exports rose 15.3 per cent, partly offsetting the petroleum decline.
The pick-up in core exports was led by faster on-year growth in organic and inorganic chemicals (19.4 per cent), electronic items (18.9 per cent) and pharmaceuticals (7.1 per cent).
Growth moderated but remained robust in engineering goods at 20.7 per cent, the report noted.
Petroleum exports dropped to $4.9 billion in June from $8.4 billion in May after Brent crude prices corrected following an interim peace agreement.
Brent averaged $85.4 a barrel in June, down 20.3 per cent from $107.1.
The report noted that merchandise imports surged 31 per cent to $70.8 billion in June, driven by a sharp pick‑up in core imports and higher oil and gold purchases.
“We expect the current account deficit to widen to 1.5 per cent of GDP in fiscal 2027 from 0.6 per cent in fiscal 2026,” the report said, citing oil as the main driver of the goods trade deficit and warning that higher crude and commodity prices will weigh on the CAD.
The ratings agency has expected crude oil prices will average $82–87 a barrel in the year ahead but flagged geopolitical risks in West Asia as a key uncertainty.
—IANS
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