India's trade deficit widens to US$ 16.3 billion in January 2018

Exports up 9.1%, imports jump 26.1% in January 2018

India's merchandise exports increased 9.1% to US$ 24.38 billion in January 2018 over a year ago. Meanwhile, merchandise imports surged 26.1% to US$ 40.68 billion. The trade deficit jumped 64.6% to US$ 16.30 billion in January 2018 from US$ 9.90 billion in January 2017.

Oil imports galloped 42.6% to US$ 11.66 billion, while the non-oil imports also increased 20.5% to US$ 29.02 billion in January 2018 over January 2017. The share of oil imports in total imports was 28.7% in January 2018, compared with 25.3% in January 2017. The price of India's basket of crude oil galloped 24.0% to US$ 67.06 per barrel in January 2018 over January 2017.

Among the non-oil imports, the major contributors to the overall rise in imports were electronic goods imports rising 12.2% to US$ 4.38 billion, electrical & non-electrical machinery 29.1% to US$ 3.01 billion, pearls, precious & semi-precious stones 55.7% to US$ 2.41 billion, coal, coke & briquettes etc 31.7% to US$ 2.20 billion, transport equipment 4.0% to US$ 1.95 billion, organic & inorganic chemicals 48.4% to US$ 1.80 billion, iron & steel 28.8% to US$ 1.29 billion and artificial resins, plastic materials, etc. 42.7% to US$ 1.23 billion.

The imports also improved for non-ferrous metals by 42.6% to US$ 1.14 billion, metaliferrous ores & other minerals 71.7% to US$ 1.02 billion, vegetable oil 13.0% to US$ 0.93 billion, chemical material & products 43.0% to US$ 0.64 billion, wood & wood products 36.5% to US$ 0.49 billion and fertilizers, crude & manufactured 83.4% to US$ 0.44 billion. However, the imports have declined for gold by 22.1% to US$ 1.59 billion and pulses 74.5% to US$ 0.12 billion in January 2018.

On exports front, the petroleum products recorded an increase in exports by 39.5% to US$ 3.83 billion, followed by engineering goods 15.8% to US$ 6.37 billion, organic & inorganic chemicals 33.6% to US$ 1.61 billion, rice 27.8% to US$ 0.66 billion, plastic & linoleum 30.3% to US$ 0.61 billion, and drugs & pharmaceuticals 8.6% to US$ 1.38 billion. The exports also moved up for marine products by 17.6% to US$ 0.47 billion, mica, coal & other ores, minerals including processed minerals 19.0% to US$ 0.33 billion and gems & jewellery 0.9% to US$ 3.03 billion in January 2018.

Further, the exports has improved for leather & leather products by 5.6% to US$ 0.44 billion, meat, dairy & poultry products 8.3% to US$ 0.30 billion, fruits & vegetables 11.3% to US$ 0.22 billion, ceramic products & glassware 14.7% to US$ 0.17 billion and spices 2.7% to US$ 0.22 billion in January 2018.

However, the exports declined for RMG of all textiles by 8.4% to US$ 1.40 billion, cotton yarn/fabrics/made-ups, handloom products etc 9.6% to US$ 0.84 billion, and electronic goods 0.9% to US$ 0.46 billion, while it also declined for iron ore by 50.5% to US$ 0.09 billion and oil seeds 45.5% to US$ 0.08 billion in January 2018.

Merchandise exports in rupees increased 2.0% to Rs 155172 crore, while imports moved up 17.9% to Rs 258890 crore in January 2018 over January 2017. The trade deficit rose to Rs 103718 crore in January 2018 compared with Rs 67432 crore in January 2017.

India's merchandise exports increased 12.1% to US$ 247.90 billion, while merchandise imports surged 22.3% to US$ 379.05 billion in April-January FY2018. An increase in imports was driven by a 26.6% jump in oil imports to US$ 87.81 billion. India's merchandise trade deficit galloped to US$ 131.16 billion in April-January FY2018 from US$ 88.75 billion in April-January FY2017.

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