The exports of India has increased and this is really good news, amidst a depreciating rupee. The recent figures show that the exports have risen at the fastest pace in August and has touched a figure of $27.84 billion. The major areas where the rise was seen is petroleum products, engineering, pharma, and gems and jewellery shipments.
It is also noted that the exports have risen at the fastest pace in the last three months. In May, the exports had seen a growth of 20.18 per cent. Alongside, there was a jump in the imports, which grew by 25.41 percent in August to USD 45.24 billion. For this huge rise, we could thank the increasing crude oil prices.
As per the data released by the commerce ministry Friday, this year, the trade deficit was USD 17.4 billion, while last year it has narrowed down to 12.72 billion in the same month.
Here is the rise in the exports of different segments rose in the month of August:
Petroleum products – 43.25 per cent
Engineering – 31.81 per cent
Pharma – 28.52 per cent
Gems and jewellery – 34.76 per cent
As far as the stock market is concerned, it has bounced back and the earnings have retreated. Amidst the news of trade talks between India, USA and China, the crude prices were expected to be slashed down. The sentiments itself led to a mild rise in the stock markets!
Vinod Nair, head of research at Geojit Financial Services said: “Easing of inflation and recovery in the rupee has led to optimism in the market.”
“Stability in the bond and currency markets will be crucial for the market momentum to sustain. The global markets gained on expectation that trade tensions between the US and China will ease,” he added.
“The Fed meeting and global headwinds remain key uncertainties. Investors should not take this as a buying opportunity, but should consider booking profits,” a trade analyst suggested.