India: Trade deficit widens in January
February 15, 2017
Recently released data related to India’s external sector showed that the trade deficit totaled USD 9.8 billion in January, which was a greater shortfall than the USD 7.7 billion gap recorded in January 2016 (December 2016: USD 10.4 billion deficit). The rolling 12-month trade deficit widened from USD 95.9 billion in December to USD 98.0 billion in January.
The deterioration in trade data came on the back of a strong expansion in imports and a downturn in exports growth. Imports totaled USD 32.0 billion in January, which represented a robust 10.7% increase from the same month of the previous year (December 2016: +0.5% year-on-year; January 2016: -10.5% yoy).
Meanwhile, exports growth fell slightly from December’s 5.7% to 4.3% (January 2016: -13.1% yoy). January was the sixth consecutive month of exports growth and saw India’s shipments abroad total USD 22.1 billion.
Author: Christopher Thomas, Economist