Trade deficit in Dec is 10-month low of $9.43 billion

Slump in trade deficit on account of falling imports due to slump in crude prices

India's trade deficit declined to 10-month low of $9.43 billion in December mainly on account of falling imports due to slump in crude prices, though exports too have come down.

Gold imports showed an increase from year-ago level to $1.34 billion in December, but it is a substantial decline from the previous month ($5.61 billion).

As per the data released by the government, imports bill declined by 4.8 per to $34.8 billion during the month from $36.6 billion from December 2013, leading to improvement in the trade balance situation.

Exports too fell by 3.8% to $25.4 billion. Outbound shipments were valued at $26.4 billion in the same month last year.
 

Gold imports at $1.34 billion in December were 7.4% higher than the corresponding month of the previous fiscal. However, it is a sharp decline from previous month when inbound shipments stood at $5.6 billion.

Oil imports during the month under review were valued at $9.94 billion, down 28.6% from $13.92 billion in the corresponding period last year.

Oil imports during April-December, 2014-15 were down 4.7% to $116.5 billion from $122.2 billion in the corresponding of 2013-14.

Global oil prices have slumped to near six-year low of around $46 a barrel, helping importing countries like India to cut back on their dollar payments.

Exports in April-December totalled to $241.15 billion as against $231.8 billion in the comparable period last fiscal, a growth of 4.02%.

The imports during April-December was $351.2 billion as against $338.9 billion, registering a growth of 3.63%.

The trade deficit in December is down 44% compared to November. In December 2013, it was $10.2 billion.

The previous low in trade balance was $8.13 billion in February, 2014.

The trade deficit April-December is $110 billion compared to $107 billion in the same period last fiscal.