December trade deficit falls to $9.43 bn on global crude dip

India's trade deficit in December 2014 fell by over 7 percent at $9.43 billion, from $10.18 billion in the corresponding month of 2013, government data showed Monday.

The fall on a month-on-month basis was over 44 percent, the November deficit having been recorded at $16.86 billion, owing mainly to the steep plunge in global crude oil prices.

"The trade deficit for April-December 2014-15 was estimated at $110.05 billion which was higher than the deficit of $107.07 billion during April-December 2013-14," the commerce and industry ministry said in a statement.

According to data released by the Reserve Bank of India (RBI), exports during the month under review decreased by 3.77 percent at $25.39 billion compared to the level of $26.39 billion during December 2013.

For the period of April-December 2014-15, exports grew by 4.02 percent at $241.15 billion from $231.82 billion in the same period of the previous fiscal.

Imports at $34.83 billion also fell by 4.78 percent in the month under review, from $36.58 billion imported in the corresponding month of 2013.

Oil imports during December 2014 were valued at $9.94 billion, which was a whopping 28.6 percent lower than oil imports in the corresponding period of 2013 at $13.92 billion. This was primarily a result of softening of international crude prices that has fallen below $45 a barrel.

Instead, the non-oil imports during the month under review were higher by 9.9 percent at $24.89 billion from $22.65 billion in December 2013.