Exports rise for the fifth month in a row in Jan

Exports of goods continued to rise for the fifth straight month though at a slightly slower pace at 4.32 per cent to $22.11 billion in January, led by higher shipments of petroleum products, engineering goods and iron ore.

Merchandise exports stood at $21.19 billion a year ago.

Meanwhile, imports during the month increased by 10.7 per cent to $31.95 billion, and the overall trade deficit widened to $9.84 billion.

The trade deficit was at $7.66 billion in January last year. However, it was much higher at $10.36 billion in December 2016.

“Overall the trade balance has improved,” said the Commerce Ministry on Wednesday.

Iron ore exports zoom As many as 17 of the 30 sectors reviewed registered a positive growth in exports, led by a 974 per cent rise in iron ore exports in January.

In an indication of muted demand following the demonetisation move, gold imports fell by 29.94 per cent last month to $2.04 billion from $2.91 billion in January 2016.

Noting that the continuous growth in exports is encouraging, SC Ralhan, President, FIEO, said exports would touch about $270 billion this fiscal.

“Increasing protectionism, volatility in currencies and uncertainties clouding over global economy pose major challenges for export sector in 2017,” he cautioned.

The increasing retreat from globalisation was also one of the challenges to growth that was highlighted by Finance Minister Arun Jaitley in the Union Budget.

April-Jan deficit shrinks The overall merchandise trade deficit between April and January this fiscal also shrunk to $86.38 billion, which is 19.82 per cent lower from $107.74 billion in the corresponding period a year ago. It was however, still lower at $76.54 billion in April and December 2016.

Merchandise exports in the period rose just 1.09 per cent to $22.09 billion from $21.85 billion in the corresponding period a year ago.

Goods imports in the first 10 months of the fiscal contracted by 5.81 per cent to $30.73 billion as compared to imports of $32.62 billion between April 2015 and January 2016.

Reflecting the rising crude oil prices in global markets, oil imports during January 2017 rose 61.07 per cent to $8.14 billion in January 2017 from $5.05 billion a year ago. Meanwhile, non-oil imports were static at $23.81 billion in the month under review.

Non-petroleum exports also grew marginally by 1.6 per cent to $19.42 billion in January 2017 from $19.11 billion a year ago.

Citing RBI data, the Commerce Ministry said that taking merchandise and services together, overall trade deficit for April to January 2016-17 is estimated at $38.07 billion, which is 29.7 per cent lower in dollar terms than the level of $54.18 billion during the same period a year ago.

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