In an indicator of economic revival, India’s outbound shipments rose for the second consecutive month in January, driven by growth in exports of engineering goods and drugs & pharmaceuticals.
Merchandise exports rose 5.37% on-year in January to $27.24 billion while imports grew 2.05% to $41.99 billion in the month.
The trade deficit narrowed to $14.75 billion from $15.44 billion in December. The gap was $15.3 billion in January 2020. This is the second consecutive month of a growth in exports. Exports had grown 0.14% year on year in December.
However, cumulative exports during April-January 2020-21 contracted 13.66% to $228.04 billion as against $264.13 billion during the same period last year.
Imports growth was led by gold, electronics goods, and pearls, precious and semi-precious stones. Gold imports jumped almost 155% to $2.45 billion last month. Oil imports were $9.40 billion, as compared to $13.01billion in January 2020, down 27.72%, the data showed.
Imports of other segments which recorded growth are pulses, pearls, precious and semi-precious stones, vegetable oil, chemicals, and machine tools.
Non-oil, non-gold, silver and precious metals imports — an indicator of the strength of domestic demand-—were $26.35 billion in January, recording a growth of 5.94%.