Exports up 0.8% in January, imports rise 6%

Trade deficit at $20 billion, Commerce and Industry Minister Anand Sharma says rising oil imports a challenge

After contracting for eight straight months, India's exports grew by a meagre 0.82% in January to $25.58 billion.

Exports had stood at $25.37 billion in January 2012.

Imports rose by 6.12% to $45.5 billion in the month under review, widening the trade deficit to $20 billion.

However, during the April-January period of 2012-13, the country's overseas shipments declined by 4.86% to $239.6 billion. Imports during the period rose by 0.01% to $406.8 billion. Trade deficit during the 10-month period stood at $167.16 billion.

"Widening trade deficit is a cause of concern," Commerce Secretary S R Rao said, adding that crude oil imports are growing at a higher rate.

Oil imports in January grew by 6.91% to $15.89 billion from $14.87 billion in the corresponding period last year.

"The oil import bill is definitely a challenge, but for a growing economy, energy needs have to be met," Commerce and Industry Minister Anand Sharma said.

Non-oil imports, too, increased by 5.71% during the month under review to $29.68 billion.

India's exports have fallen since last year as demand slowed from major sales destinations, adding to the country's economic gloom and heightening worries about its trade and current account deficits.

The government is hopeful that exports in January will help close the trade gap, Sharma added.

Sharma said gold imports are a matter of concern and a balanced approach is needed towards gold import