Trade deficit widens to 3-year high despite rise in exports

India's exports grew by 9 per cent to $24.38 billion in January, helped by a healthy growth in shipments of chemicals, engineering goods and petroleum products, even as the trade deficit widened to an over threeyear high.

The trade gap soared to $16.3 billion in January on account of a 26.1 per cent increase in imports to $40.68 billion due to increased inbound shipments of crude oil, as per data released by the commerce ministry.

The country's trade deficit -- the difference between imports and exports -- had touched the figure of $16.86 billion in November 2014.

The trade deficit in January last year stood at $9.90 billion.

"Exports have been on a positive trajectory since August 2016 to January 2018 with a dip of 1.1 per cent in the month of October 2017," the ministry said in a statement.

Cumulative value of exports for April-January 2017-18 grew by 11.75 per cent to $247.89 billion as against $221.82 billion in the yearago period. Imports during the ten-month period of the current fiscal amounted to $379 billion as against $310 billion, a growth of 22.21 per cent.

The trade deficit during the period widened to $131.15 billion.

Exports of chemicals, engineering goods as well as petroleum products grew by 33 per cent, 15.77 per cent and 39.5 per cent in January.

However, shipments of readymade garments declined by 8.38 per cent to $1.39 billion last month.

Gold imports dropped by 22 per cent to $1.59 billion last month as against $2.04 billion in January 2017.

Oil and non-oil imports during the month under review rose by 42.64 per cent and 20.49 per cent to $11.65 billion and $29 billion, respectively.

During April-January 2017-18, oil imports increased by 26.35 per cent to $87.80.billion.

Meanwhile, Reserve Bank data showed that the exports in services in December 2017 were valued at $16 billion.