After a period of nine months, the country's exports of goods declined by 9.7% for the month of June to $25 billion. Also, during the same time, imports shank by 9.06% to $40.29 billion. The trade deficit lowered year-on-year from $16.6 billion in June 2018 to $15.28 billion for June 2019.
While for China, there came in a huge trade surplus of $50.98 billion which was against the expectations of analysts' owing to a sharper decline of 7.3% in imports than in exports of 1.3%.
Further, due to the imposition of sanctions on oil imports from Iran, there could be an increase in imports thus putting pressure on the country's CAD or current account deficit.
India's exports have been suffering on the back of continuing trade war situation between the US and China and increasing protectionism measures. In order to give a much-needed fillip to merchandise exports from the country, the ministry of commerce is evaluating an export promotion scheme together with a production-based support scheme, for strengthening the roots of its Make in India initiative.