Trade deficit declines 5.0% yoy to US$ 14.54 billion in January 2021
India's merchandise exports increased 6.2% to US$ 27.45 billion in January 2021 over a year ago. Meanwhile, merchandise imports moved up 2.0% to US$ 41.99 billion. The trade deficit declined 5.0% to US$ 14.54 billion in January 2021 from US$ 15.17 billion in January 2020.Oil imports declined 27.7% to US$ 9.40 billion, while the non-oil imports moved up 15.8% to US$ 32.58 billion in January 2021 over January 2020. The share of oil imports in total imports was 22.4% in January 2021, compared with 31.5% in January 2020. The price of Brent crude oil skidded 13.1% to US$ 55.28 per barrel in January 2021 over January 2020.
Among the non-oil imports, the major contributors to the overall rise in imports were gold imports rising 154.7% to US$ 4.04 billion, electronic goods 17.4% to US$ 5.28 billion, pearls, precious & semi-precious stones 50.2% to US$ 2.20 billion, vegetable oil 35.3% to US$ 1.14 billion, iron & steel 25.9% to US$ 1.43 billion and organic & inorganic chemicals 16.0% to US$ 1.99 billion, while imports of artificial resins, plastic materials, etc also moved up 21.0% to US$ 1.53 billion, non-ferrous metals 17.6% to US$ 1.35 billion, coal, coke & briquettes, etc 9.7% to US$ 1.87 billion, chemical material & products 17.8% to US$ 0.83 billion, wood & wood products 2.8% to US$ 0.48 billion and medicinal & pharmaceutical products 0.2% to US$ 0.55 billion.
However, the imports of transport equipment declined 25.3% to US$ 1.66 billion, fertilisers, crude & manufactured declined 11.6% to US$ 0.59 billion, professional instrument, optical goods etc 11.7% to US$ 0.39 billion, electrical & non-electrical machinery 1.4% to US$ 3.37 billion and metaliferrous ores & other minerals 4.6% to US$ 0.45 billion in January 2021.
On exports front, the engineering goods recorded a rise in exports by 18.8% to US$ 7.39 billion, followed by drugs & pharmaceuticals 16.4% to US$ 2.07 billion, iron ore 108.8% to US$ 0.53 billion, and electronic goods 16.0% to US$ 1.18 billion. The exports also moved up for rice by 26.3% to US$ 0.76 billion, cotton yarn/fabrics/made-ups, handloom products etc. 7.1% to US$ 0.97 billion, plastic & linoleum 10.4% to US$ 0.64 billion, and spices 20.4% to US$ 0.29 billion. Further, exports for organic & inorganic chemicals moved up by 2.5% to US$ 1.94 billion, ceramic products & glassware 19.0% to US$ 0.30 billion, fruits & vegetables 24.3% to US$ 0.23 billion and mica, coal & other ores, minerals including processed minerals 11.9% to US$ 0.36 billion in January 2021.
However, exports for petroleum products declined by 32.1% to US$ 2.16 billion, RMG of all textiles 10.7% to US$ 1.30 billion, leather & leather products 18.6% to US$ 0.33 billion, man-made yarn/fabrics/made-ups etc. 9.6% to US$ 0.41 billion, gems & jewellery 1.3% to US$ 2.84 billion, meat, dairy & poultry products 8.0% to US$ 0.30 billion, and marine products 1.7% to US$ 0.42 billion in January 2021.
Merchandise exports in rupees rose 8.8% to Rs 200661 crore, while imports increased moved up by 4.6% to Rs 306952 crore in January 2021 over January 2020. The trade deficit narrowed to Rs 106290 crore in January 2021 compared with Rs 108215 crore in January 2020.
India's merchandise exports fell 13.7% to US$ 228.25 billion, while merchandise imports declined 25.2% to US$ 300.26 billion in April-January 2021. The decline in imports was driven by a 42.1% fall in oil imports to US$ 63.09 billion. India's merchandise trade deficit eased to US$ 72.01 billion in April-January 2021 from US$ 137.21 billion in April-January 2020.
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