Jan trade deficit falls to 11-mth low; exports fall

Weak exports and declining oil prices pulled India’s trade deficit to an 11-month low of $8.32 billion in January this year, against $9.45 billion in the year-ago period.

Weak exports and declining oil prices pulled India’s trade deficit to an 11-month low of $8.32 billion in January this year, against $9.45 billion in the year-ago period.

However, exports contracted by 11.19% to $23.88 billion against $26.89 billion last year, thereby cautioning the economy at a time when the government is trying to push growth.

Almost all sectors witnessed a declining trend in exports including tea-coffee, rice, spices, gems and jewellery, among others.

According to the commerce ministry statement, outbound shipments of cotton yarn, chemicals, pharmaceuticals and gems and jewellery contracted by 9.15%, 10.52%, 0.16% and 3.73%, respectively in January this year.

Imports, too, slipped in January by 11.39% to $32.2 billion, against $36.3 billion in the same month last year, on the back of declining oil prices.

Gold imports surged by 8.13% to $1.55 billion on easing of restrictions by the Reserve Bank.

Imports in sectors such as machinery both electrical and non-electrical, project goods and key inputs such as precious and semi-precious stone, ferrous metal, organic and inorganic chemicals witnessed a negative growth.

On cumulative basis, for April-January period in 2014-15, exports grew by 2.44% to $265 billion, along with a rise of 2.17% in imports, leaving a trade deficit of $118.37 billion.