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According to the data provided by the Ministry of Commerce & Industry, India’s merchandise exports contracted for a seventh consecutive month in August, declining 6.9 per cent year-on-year to $34.48 billion, owing to weak external demand.The merchandise trade deficit, or the gap between exports and imports, on the other hand, widened to a 10-month high of $24.16 billion in August .Imports stood at $58.64 billion last month, down 5.2 per cent year-on-year.Key export items that dipped in August included petroleum products (-30.61 per cent), gems and jewellery (-21.94 per cent), readymade garments (-8.15 per cent), and organic and inorganic chemicals (-18.83 per cent).Among key sectors that experienced growth included electronic goods (26.29 per cent) and engineering goods (7.73 per cent).Merchandise imports contracted in 15 of the 30 sectors, including coal (-43.47 per cent), crude petroleum (-23.76 per cent), and precious stones (-15.82 per cent). On the other hand, after witnessing contraction for around a year, gold imports grew 38 per cent to $4.9 billion.
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