NEW DELHI : Exports of goods continued to rise for the fifth straight month though at a slightly slower pace at 4.32 per cent to $22.11 billion in January, led by higher shipments of petroleum products, engineering goods and iron ore.
Merchandise exports stood at $21.19 billion a year ago.
Meanwhile, imports during the month increased by 10.7 per cent to $31.95 billion, and the overall trade deficit widened to $9.84 billion.
The trade deficit was at $7.66 billion in January last year. However, it was much higher at $10.36 billion in December 2016.
“Overall the trade balance has improved,” said the Commerce Ministry.
Iron ore exports zoom
As many as 17 of the 30 sectors reviewed registered a positive growth in exports, led by a 974 per cent rise in iron ore exports in January.
In an indication of muted demand following the demonetisation move, gold imports fell by 29.94 per cent last month to $2.04 billion from $2.91 billion in January 2016.
The increasing retreat from globalisation was also one of the challenges to growth that was highlighted by Finance Minister Arun Jaitley in the Union Budget.
April-Jan deficit shrinks
The overall merchandise trade deficit between April and January this fiscal also shrunk to $86.38 billion, which is 19.82% lower from $107.74 billion in the corresponding period a year ago. It was however, still lower at $76.54 billion in April and December 2016.
Merchandise exports in the period rose just 1.09 per cent to $22.09 billion from $21.85 billion in the corresponding period a year ago.
Goods imports in the first 10 months of the fiscal contracted by 5.81 per cent to $30.73 billion as compared to imports of $32.62 billion between April 2015 and January 2016.
Reflecting the rising crude oil prices in global markets, oil imports during January 2017 rose 61.07 per cent to $8.14 billion in January 2017 from $5.05 billion a year ago. Meanwhile, non-oil imports were static at $23.81 billion in the month under review.
Non-petroleum exports also grew marginally by 1.6 per cent to $19.42 billion in January 2017 from $19.11 billion a year ago.
Citing RBI data, the Commerce Ministry said that taking merchandise and services together, overall trade deficit for April to January 2016-17 is estimated at $38.07 billion, which is 29.7 per cent lower in dollar terms than the level of $54.18 billion during the same period a year ago.
Source: Dailyshippingtimes.com