December trade deficit at $9.43 billion, falls to 10-month low

New Delhi: India’s trade deficit declined to 10-month low of $9.43 billion in December mainly on account of falling imports due to slump in crude prices, though exports too have come down. [caption id=“attachment_1986169” align=“alignleft” width=“380”]  Representational Image. Reuters[/caption] Gold imports showed an increase from year-ago level to $1.34 billion in December, but it is a substantial decline from the previous month ($5.61 billion). As per the data released by the government, imports bill declined by 4.8 percent to $34.8 billion during the month from $36.6 billion from December 2013, leading to improvement in the trade balance situation. Exports too fell by 3.8 percent to $25.4 billion. Outbound shipments were valued at $26.4 billion in the same month last year. Gold imports at $1.34 billion in December were 7.4 percent higher than the corresponding month of the previous fiscal. However, it is a sharp decline from previous month when inbound shipments stood at $5.6 billion. Oil imports during the month under review were valued at $9.94 billion, down 28.6 per cent from $13.92 billion in the corresponding period last year. Oil imports during April-December, 2014-15 were down 4.7 percent to $116.5 billion from $122.2 billion in the corresponding of 2013-14. Global oil prices have slumped to near six-year low of around $46 a barrel, helping importing countries like India to cut back on their dollar payments. Exports in April-December totalled to $241.15 billion as against $231.8 billion in the comparable period last fiscal, a growth of 4.02 percent. The imports during April-December was $351.2 billion as against $338.9 billion, registering a growth of 3.63 percent. The trade deficit in December is down 44 percent compared to November. In December 2013, it was $10.2 billion. The previous low in trade balance was $8.13 billion in February, 2014. The trade deficit April-December is $110 billion compared to $107 billion in the same period last fiscal. PTI