Trade deficit falls sharply by 38% in July-August

The country’s trade deficit shrank by nearly 38% in 2MFY20, driven largely by a decline in imports of non-essential luxury items. Trade deficit dipped to $ 3.973Bn from $ 6.37Bn over 2MFY19. Imports clocked in at $ 7.66Bn, down 21.74% from $ 9.79Bn while exports grew by 8% to $ 3.69Bn from $ 3.41Bn. Duty-free imports -machinery and raw materials- grew by 6.89% to $ 3Bn as against $ 2.9Bn.