India's exports contracted 13.6 per cent in January - 14th month in a row - to USD 21 billion due to a steep fall in shipment of petroleum products and engineering goods amid tepid global demand.
Imports too shrank 11 per cent to USD 28.71 billion last month, leaving a trade deficit of USD 7.63 billion as against USD 7.87 billion in the same month last year. It is the lowest deficit in 11 months. In February last year, it was USD 6.85 billion.
The deficit would have been lower if gold imports hadn't shot up 85.16 per cent last month to USD 2.91 billion.
Overseas shipments of petroleum products shrank 35.18 per cent to USD 1.95 billion in January, while that of engineering goods declined by 27.6 per cent to 4.98 million.
For the first 10 months of the current fiscal, cumulative exports declined by 17.65 per cent to USD 217.67 billion, as against USD 264.32 billion in April-January period of 2014-15.
As per the data released by the Commerce Ministry, imports dipped by 15.46 per cent to USD 324.52 billion for the 10 months, leaving a trade deficit of USD 106.8 billion. The trade gap was USD 119.55 billion in April-January 2014-15.
Oil imports last month were valued at USD 5.02 billion - 39.01 per cent lower than the same month last year. Non-oil imports too dipped by 1.4 per cent to USD 23.68 billion.
India's exports in the last five years have been hovering
around USD 300 billion. In 2015-16, they were worth USD 261 billion; USD 310 billion in 2014-15 and USD 314 in 2013-14.
This year, the exports are expected to be a little higher at USD 280 billion according to FIEO.
Regarding the visa regime, the Commerce Ministry is proposing several steps such as giving long term and multiple entry visa to businessmen in order to boost India's services exports.
The ministry has already suggested these measures to the home ministry.
All these steps are aimed at increasing the country's share in the global trade. It is aiming to increase its share to 3.5 per cent from the current 2 per cent by 2020.
It is also aiming to nearly double its goods and services exports to USD 900 billion by 2019-2020.
After rising for the first time in 18 months in June, exports shrank again in July, contracting 6.84 per cent due to decline in shipments of engineering goods and petroleum products.
