Import of industrial, consumer goods shrink in Jan

Reflecting deepening of the economic downturn, India's import of industrial goods and other non-oil items declined for the first time in the current fiscal in January.

"Non-oil imports during January 2008-09 were estimated at $13.99 billion which was 0.5 per cent lower than non-oil imports of $14.06 billion in January 2007-08," said an official release today.

Commenting on declining non-oil imports, Crisil Principal economist D K Joshi said "they (imports) are declining because of slowdown in industrial production which is close to zero per cent, slippage in domestic demand and dip in international commodity prices".

The decline in non-oil imports also reflects slowdown in demand for industrial goods and consumer items as well as declining prices of fertilisers in the international market.

In addition to industrial slowdown, Joshi said "to some extend currency depreciation too might have contributed to decline in import of non-oil items."

The non-oil imports during April-January in 2008-09, however, were up by 21.9 per cent to USD 161.10 billion.

Exports dropped to $12.38 billion in January this fiscal from $14.71 billion a year ago, while imports dipped by 18.2 per cent to $18.45 billion, leaving a monthly trade deficit of about $6.07 billion.