labels: economy - general
India''s trade deficit tops $50 billion; export growth slackens in January news
01 March 2007

Mumbai: The country's export growth slackened in January 2007 to 14.08 per cent with total exports of $9.64 billion, while imports rose 35.74 per cent to $15.43 billion over the corresponding month a year ago.

Exports in January 2006 stood at $8.45 billion, while imports higher at $11.36 billion, as per provisional estimates of the last financial year.

Imports in January this year increased by 23.24 per cent compared to the provisionally revised import figure of $12.52 billion in January 2006.

India's trade deficit expanded to $5.78 billion in January 2007 from $3.38 billion a year earlier as export growth remained sluggish and oil demand rose in Asia's fourth-largest economy, according to the provisional data released by the commerce ministry.

Trade deficit stood at $5.68 billion in December 2006, $6.20 billion in November, and $6.21 billion in October.

Deficit for the first 10 months jumped to $505.89 billion over $338.25 billion during the comparable period of last fiscal, April-January 2006.

Trade deficit so far this fiscal has increased to $50.58 billion as against $33.82 billion during April-January 2005-06,

According to the provisionally revised figures of 2005-06, export growth is much lower at 5.5 per cent in January 2007 compared to $9.14 billion in the same month a year ago.

Much of the rise in imports has been due to higher oil import prices in January and a higher demand for fuel.

India imports more than 70 per cent of the oil it needs and a robust growth in industry has raised demand for fuel. Oil imports in April-January accounted for $4.8 billion.

Non-oil imports, on the other hand, rose 23.31 per cent and were valued at $10.11 billion in the first 10 months compared with $82.01 billion in the corresponding period of last fiscal.

During April-January, exports grew by 20 per cent to $99.14 billion, while imports were up 27 per cent at $149.73 billion.

India is aiming for export growth of 22.3 per cent to $126 billion for the full year.

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India''s trade deficit tops $50 billion; export growth slackens in January