DNA Money Edit: Fall in exports deals a crude blow

Decline in India's merchandise exports in September points to a reality: despite letting the rupee slip nearly 16% in 2018 so far to 73.82 vis-a-vis US dollar as on Monday, exports have not seen an uptick. The September number shows the substantial depreciation in the rupee has not helped enhance the competitiveness of India's shipments. In most cases, exports continue to bear the high cost of raw materials and interest rates, amid growing uncertainties of the tariff war.

Exports were on the rise since April, after declining by 0.66% in March 2018. They have now entered a negative zone (2.15%) after five months. On the flip side, imports have gone up by 10.45% in September, pushing up the trade deficit (the gap between imports and exports) to $13.98 billion in September, and $94.32 billion in the first six months.

The trade deficit in September is the lowest in five months. India's oil import bill is on a steady rise amid concerns that the sanctions against Iran next month would remove a substantial volume of crude oil from the world markets.

PM Narendra Modi has warned international oil producers that high crude prices were hurting the global economy. India, the world's third-biggest oil consumer, has been battered by high crude prices too, with retail petrol and diesel prices reaching a peak, and together with a sliding rupee, threatening to upset its current account deficit.