After rising for the first time in 18 months in June, exports shrank again in July, contracting 6.84 per cent due to decline in shipments of engineering goods and petroleum products.

Gold imports, which till recently was a matter of concern for the government, more than halved to $1.08 billion in the month. Merchandise exports totalled $21.69 billion in July as against $23.28 billion in the same month last year.

Declining exports as well as in imports narrowed the trade deficit in July to $7.76 billion as against $13.09 billion in the year-ago period.

Exports have been falling since December 2014 due to weak global demand and slide in oil prices.

As per the data released by Commerce and Industry Ministry, imports in July were at $29.45 billion, down 19.03 per cent from $36.37 billion in the same month a year ago. Gold imports dropped over 64 per cent to $1.08 billion, from $2.97 billion in July 2015. Import of the precious metal has been declining sharply due to measures like higher customs duty and gold schemes.

Gold used to be the second most imported item in the country after petroleum. Data revealed that imports of petroleum, crude and related products fell 28 per cent in July, while that of coal, coke and briquettes shrank by about 7 per cent.

Source: PTI