Due to the net increase in export, India’s trade deficit has contracted in the month of January year on year basis. According to the data released by the Ministry of Commerce, the trade deficit (gap between exports and imports) stood at $14.73 billion compared with $15.67 billion a year ago. The trade deficit, however, has widened up as compared to the previous month.
Trade deficit had earlier in December 2018 narrowed down to the lowest in 10 months at $13.08 billion. The imports in January 2019 increased to $41.09 billion from $41.01 billion in December 2018 and $41.08 billion a year ago.
India export soared from $25.41 billion in January 2018 to $26.36 billion in the month under review. However, the exports narrowed from $27.93-billion in December. India’s crude oil import declined 3.59 per cent to $11.24 billion in January over last year. Brent crude prices fell 14.09 per cent in the same month.
Major Import: Gold imports surged 38 per cent $2.3 billion, Electronic goods imports surged 8 per cent to $4.7 billion, Iron and steel imports rose 17.6 per cent to $1.5 billion.
Major Export: Engineering goods exports increased 1.07 per cent to $6.51 billion, Drug and pharmaceutical exports rose 15.2 per cent $1.58 billion whereas petroleum product exports fell 19 per cent to $3.2 billion.