New Delhi: India's trade deficit declined to 10-month low of USD 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 USD 1.34 billion in December, but it is a substantial decline from the previous month (USD 5.61 billion).
As per the data released by the government, imports bill declined by 4.8 percent to USD 34.8 billion during the month from USD 36.6 billion from December 2013, leading to improvement in the trade balance situation.
Exports too fell by 3.8 percent to USD 25.4 billion. Outbound shipments were valued at USD 26.4 billion in the same month last year.
Gold imports at USD 1.34 billion in December were 7.4 percent higher than the corresponding month of the previous fiscal. However, it is a sharp decline from previous month when inbound shipments stood at USD 5.6 billion.
Oil imports during the month under review were valued at USD 9.94 billion, down 28.6 percent from USD 13.92 billion in the corresponding period last year.
Oil imports during April-December, 2014-15 were down 4.7 percent to USD 116.5 billion from USD 122.2 billion in the corresponding of 2013-14.
Global oil prices have slumped to near six-year low of around USD 46 a barrel, helping importing countries like India to cut back on their dollar payments.
Exports in April-December totalled to USD 241.15 billion as against USD 231.8 billion in the comparable period last fiscal, a growth of 4.02 percent.
The imports during April-December was USD 351.2 billion as against USD 338.9 billion, registering a growth of 3.63 percent.
The trade deficit in December is down 44 percent compared to November. In December 2013, it was USD 10.2 billion.
The previous low in trade balance was USD 8.13 billion in February, 2014.
The trade deficit April-December is USD 110 billion compared to USD 107 billion in the same period last fiscal.
Commenting on the decline in exports, Commerce and Industry Minister Nirmala Sitharaman said that she was not worried about monthly fluctuations.
"I wouldn't want to respond on month-on-month figures. You are seeing the whole mood. Things are changing. I am sure these dips and rises will happen. I am not worried about that but overall the mood is changing," she added.
Exporters said that huge efforts would be required in the remaining three months of the current fiscal to achieve the export target of USD 340 billion.
Federation of Indian Exports Organisations President M Rafeeque Ahmed said, "This (reaching exports target of USD 340 billion) would require average exports of USD 33 billion per month as against USD 26-27 billion per month in the past".
"The depreciation of Indian Rupee and marginal inflation has provided much competitiveness to our exports which can be imparted further by providing interest subvention, reduction in transaction cost and continuance of Exim schemes," he said.
