India: Trade deficit narrows in December
January 13, 2017
Recently released data related to India’s external sector showed that the trade deficit totaled USD 10.4 billion in December, which was a smaller shortfall than the USD 11.5 billion gap recorded in December 2015 (November 2016: USD 13.0 billion deficit). The rolling 12-month trade deficit narrowed from USD 96.9 billion in November to USD 95.8 billion in December.
The improvement in trade data came on the back of a rebound in exports and a downturn in imports growth. Imports totaled USD 34.3 billion in December, which represented a muted 0.5% increase from the same month of the previous year (November 2016: +10.8% year-on-year; December 2015: -3.5% yoy).
Meanwhile, exports growth picked up steam notably, rising from November’s flat growth over the same month of the previous year to 5.7% (December 2015: -13.6% yoy). India’s shipments abroad totaled USD 23.9 billion, the largest amount since March 2015.