January trade deficit falls to 11-month low, exports down

India's trade deficit in January fell to a eleven-month low by over 11 percent at $8.32 billion, from $9.43 billion in the corresponding month of 2014, government data showed Friday.

The fall on a month-on-month basis was similar despite weaker exports, with the December 2014 deficit having been recorded at $9.45 billion, as declining oil prices helped bring down the country's import bill.

According to data released by the Reserve Bank of India (RBI), exports during the month under review fell 11.12 percent to $23.88 billion, extending December's 3.77 percent decline $25.39 billion.

During the April to January period of the current fiscal, exports grew by 2.44 percent to $265.03 billion.

Imports in the April to January period were up by 2.17 percent to $383.41 billion, leaving a trade deficit of $118.37 billion

Exports contracted, with the main performing poorly sectors being cotton yarn, chemicals, pharmaceuticals and gems and jewellery.

Exports of cotton yarn, chemicals, pharmaceuticals and gems and jewellery contracted by 9.15 percent, 10.52 percent, 0.16 percent and 3.73 percent, respectively, in January this year.

Exports of tea, coffee, rice, tobacco and spices also recorded a negative growth in the month in review.

Exports in January 2014 stood at $26.89 billion.

Imports declined by 11.39 percent to $32.2 billion during the month.

Gold imports in January grew by 8.13 percent to $1.55 billion.