Merchandise exports recovered a bit to post a growth of 2.2 per cent in July, compared to a huge contraction of 9.7 per cent in the previous month even as the outbound shipments of high foreign exchange earners such as refinery products, engineering goods and gems and jewellery fell.
Reflecting subdued economic conditions back home, imports continued to decline. In fact, the inbound shipments dropped at a faster rate of 10.43 per cent in July against 9.06 per cent in the previous month, official data released on Wednesday showed. Part of it is due to a 22 per cent decrease in imports of petroleum due to softening of prices and 42 per cent fall in those of gold.
A better way to look at the industrial situation in domestic economy is to look at non-oil non-gold imports. These also continued to chart a negative territory. Non-oil non-gold imports contracted 5.6 per cent against a fall of 9.3 per cent in the previous month.