January trade deficit at one-year low of $17.75 billion but exports also down 6.58%

The merchandise trade deficit for the April-January this fiscal stood at about $233 billion (Representative image: Reuters)

India's trade deficit in January sank to its lowest in a year at $17.75 billion but exports, too, contracted 6.58 percent during the month, hit by a slump in global demand, data released by the government on February 15 showed.

The merchandise exports came down to $32.91 billion in January from $35.23 billion in the year-ago period. Merchandise imports, too, slipped 3.63 percent, the second straight month of decline, to $50.66 billion. In January 2022, they stood at $52.57 billion.

During the April-January 2022-23 period, exports rose 8.51 percent to $369.25 billion, while imports increased 21.89 percent to $602.20 billion, the data showed.

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The merchandise trade deficit for the April-January period was at about $233 billion.

It was in January 2022, when the trade deficit touched $17.42 billion.

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Export sectors that recorded negative growth during the 10-month period of this fiscal include engineering goods, iron ore, plastic and linoleum, gems and jewellery.

Engineering exports dipped 3.37 percent to $88.27 billion during the April-January period. In the same period, gems and jewellery shipments declined by 0.54 percent to $31.61 billion.

Petroleum products, electronic goods, rice, ready-made garments and chemicals were among the sectors to record positive growth.

"The overall exports (goods and services) growth in the current financial year is about 17.33 percent. The main engine behind this export growth is the services sector, which has been growing at a historically high growth rate of about 30 percent.

"Merchandise exports are also cumulatively growing at 8.5 percent. We are optimistic that this growth momentum would continue despite strong global headwinds," commerce secretary Sunil Barthwal told mediapersons.

Gold imports during the April-January period contracted 11.26 percent to $29 billion from $40.35 billion in the year-ago period.

In the 10 months of the current fiscal, crude oil imports rose 53.54 percent to $178.45 billion. Similarly, imports of coal, coke and briquettes rose 18.91 percent to $43.17 billion.

"In spite of global headwinds, political turmoil and recessionary trends amongst the major economies, during April-January this fiscal, the country's merchandise exports recorded a growth," said Sanjay Budhia Chairman, CII National Committee on Exports & Imports.

With PTI inputs