Introduction

The integration of the domestic economy through the twin channels of trade and capital flows has accelerated in the past two decades which in turn led to the Indian economy growing from Rs 32 trillion (US$ 474.37 billion) in 2004 to about Rs 153 trillion (US$ 2.3 trillion) by 2016. Simultaneously, the per capita income also nearly trebled during these years. India’s trade and external sector had a significant impact on the GDP growth as well as expansion in per capita income.

Total merchandise exports from India grew by 4.48 per cent year-on-year to US$ 25.83 billion in February 2018, while merchandise trade deficit increased 25.81 per cent year-on-year from US $ 11.979 billion during April-February 2017-18 to US $ 9.521 billion during April-February 2017-18, according to data from the Ministry of Commerce & Industry.

According to Mr Suresh Prabhu, Minister for Commerce and Industry, the Government of India is keen to grow exports and provide more jobs for the young, talented, well-educated and even semi-skilled and unskilled workforce of India. During April 2000–December 2017, India received total foreign investment (including equity inflows, re-invested earnings and other capital) worth US$ 532.6 billion. The country was one of the top destinations for FDI inflows from Asian countries, with Mauritius contributing 34 per cent, Singapore 17 per cent and Japan and UK contributing 7 per cent each of the total foreign inflows.

India’s overall exports (Merchandise and Services combined) in April-August 2018-19* are estimated to be USD 221.83 Billion, exhibiting a positive growth of 20.70 per cent over the same period last year. Overall imports in April-August 2018-19* are estimated to be USD 269.54 Billion, exhibiting a positive growth of 21.01 per cent over the same period last year.

I. MERCHANDISE TRADE
EXPORTS (including re-exports)
Exports in August 2018 were US $ 27.84 Billion, as compared to US $ 23.36 Billion in August 2017, exhibiting a positive growth of 19.21 per cent. In Rupee terms, exports were Rs. 1,93,624.74 Crore in August 2018, as compared to Rs. 1,49,398.90 Crore in August 2017, registering a positive growth of 29.60 per cent.

In August 2018, major commodity groups of export showing positive growth over the corresponding month of last year are Cumulative value of exports for the period April-August 2018-19 was US $ 136.09 Billion (Rs 9,23,447.82 Crore) as against US $ 117.19 Billion (Rs 7,54,218.89 Crore) during the period April-August 2017-18, registering a positive growth of 16.13 per cent in Dollar terms (22.44 per cent in Rupee terms).

Non-petroleum and Non Gems and Jewellery exports in August 2018 were US $ 20.70 Billion, as compared to US $ 17.78 Billion in August 2017, exhibiting a positive growth of 16.45 per cent. Non-petroleum and Non Gems and Jewellery exports in April-August 2018-19 were US $ 99.24 Billion, as compared to US $ 87.60 Billion for the corresponding period in 2017-18, an increase of 13.28 %.

IMPORTS
Imports in August 2018 were US $ 45.24 Billion (Rs 3,14,597.54 Crore), which was 25.41 per cent higher in Dollar terms and 36.34 per cent higher in Rupee terms over imports of US $ 36.07 Billion (Rs. 2,30,737.96 Crore) in August 2017. Cumulative value of imports for the period April-August 2018-19 was US $ 216.43 Billion (Rs. 14,69,479.24 Crore), as against US $ 184.45 Billion (Rs. 11,87,188.89 Crore) during the period April-August 2017-18, registering a positive growth of 17.34 per cent in Dollar terms (23.78 per cent in Rupee terms). Major commodity groups of import showing high growth in August 2018 over the corresponding month of last year are:

CRUDE OIL AND NON-OIL IMPORTS:
Oil imports in August 2018 were US $ 11.83 Billion (Rs. 82,274.22 Crore), which was 51.62 percent higher in Dollar terms (64.84 percent higher in Rupee terms), compared to US $ 7.80 Billion (Rs. 49,911.68 Crore) in August 2017. Oil imports in April-August 2018-19 were US $ 58.81 Billion (Rs. 3,99,371.93 Crore) which was 53.55 per cent higher in Dollar terms (62.01 percent higher in Rupee terms) compared to US $ 38.30 Billion (Rs. 2,46,504.68 Crore), over the same period last year.

In this connection it is mentioned that the global Brent price ($/bbl) has increased by 42.36% in August 2018 vis-à-vis August 2017 as per data available from World Bank (Pink Sheet). Non-oil imports in August 2018 were estimated at US $ 33.41 Billion (Rs. 2,32,323.32 Crore) which was 18.17 per cent higher in Dollar terms (28.48 percent higher in Rupee terms), compared to US $ 28.27 Billion (Rs. 1,80,826.29 Crore) in August 2017.

Non-oil imports in April-August 2018-19 were US $ 157.62 Billion (Rs. 10,70,107.31 Crore) which was 7.84 per cent higher in Dollar terms (13.76 percent higher in Rupee terms), compared to US $ 146.15 Billion (Rs. 9,40,684.21 Crore) in April-August 2017-18.

Non-Oil and Non-Gold imports were US $ 29.77 billion in August 2018, recording a positive growth of 12.84%, as compared to Non-Oil and Non-Gold imports in August 2017. Non-Oil and Non-Gold imports were US $ 142.57 billion in April-August 2018-19, recording a positive growth of 8.93%, as compared to Non-Oil and Non-Gold imports in April-August 2017-18.

II. TRADE IN SERVICES (for July, 2018, as per the RBI Press Release dated 14th September 2018)
EXPORTS (Receipts) : Exports in July 2018 were US $ 17.55 Billion (Rs. 1,20,577.53 Crore) registering a positive growth of 4.04 per cent in dollar terms, as compared to a positive growth of 4.32 per cent in June 2018 (as per RBI’s Press Release for the respective months).

IMPORTS (Payments)) : Imports in July 2018 were US $ 10.85 Billion (Rs. 74,532.34 Crore) registering a positive growth of 5.35 per cent in dollar terms, as compared to a positive growth of 0.89 per cent in June 2018 (as per RBI’s Press Release for the respective months).

III.TRADE BALANCE
MERCHANDISE: The trade deficit for August 2018 was estimated at US $ 17.39 Billion as against the deficit of US $ 12.72 Billion in August 2017.
SERVICES: As per RBI’s Press Release dated 14th September 2018, the trade balance in Services (i.e. Net Services export) for July, 2018 is estimated at US $ 6.70 Billion