India's Trade Deficit At $20.7 Billion In July As Exports, Imports Decline

India's trade deficit saw a modest rise in July even as exports and imports continued to decline.

The merchandise trade deficit was $20.7 billion in July, compared with $20.1 billion in June, according to a press briefing held by the Ministry of Commerce and Industry.

• Merchandise exports fell 15.9% year-on-year to $32.25 billion in July.

• Merchandise imports declined by 17% year-on-year to $52.9 billion.

• On a monthly basis, exports fell 2.2% and imports declined 0.3%.

"There is a clear shrinkage of imports in consumer economies like the U.S. and Europe, leading to export declines in India," additional secretary Satya Srinivas said. However, trade momentum is expected to pick up in the second half of the year, he said.

Exports of services continued to record an uptick, rising by 12% year-on-year, according to estimates by the ministry. Imports of services rose by 5.6%.