After the GST Council's efforts ease concerns around exporters refund, exports have gained momentum in the country. In the month of November, exports surged by 30.55% after declining 1.1% in the previous month.
For the November month, the outbound shipment was $26.19 billion in comparison to $20.06 billion in the corresponding period a year ago.Low base effect and increasing price of petroleum products are other triggers which boosted exports and 80% of the increase in merchandise exports is attributed to petroleum products, engineering goods, chemicals and gems and jewellery.
Imports also rose by 19.6% to $40.02 billion, recording a three-month high in November month primarily owing to increase in import of oil.
With it, the trade deficit stands at $13.82 billion for November month and is likely to create pressure on CAD which was 1.2% of GDP for the second quarter.