Exports contract for sixth straight month, trade deficit shoots up

While imports contracted by 0.7 per cent, the rate of fall was significantly lower than the 8.9 per cent contraction in inbound trade seen in December

Exports contracted for the sixth straight month in January as major foreign exchange earning sectors such as engineering goods, jewellery, and textiles continued to be plagued by broad-based contraction even as petroleum exports picked up.

Data released on Friday by the commerce department showed outbound trade contracted by 1.6 per cent in January, slightly lower than December’s 1.8 per cent fall. Exports have fallen in seven of the 10 months of financial year 2019-20 (FY20). Till January, cumulative exports stood at $265.3 billion, 1.9 per cent lower than in the corresponding period in the previous financial year.

On the other hand, January