Improving the outlook for the country’s current account balance, trade deficit narrowed in January at $9.91 billion as compared to $10.14 billion in December and way lower than $18.98 billion in the corresponding month of the previous year, mainly on account of sharp drop of 18.07% in imports for January, as compared to year earlier at $36.67 billion. However, merchandise exports grew by just 3.79% at $26.75 billion as against $25.78 billion.
Total imports recorded an 18% contraction on account of sharp drop of 77% in gold and silver imports on the year. Cumulatively, exports during April-January grew by 5.71% at $257.088 billion, while imports slid by 7.81% at $377.044 billion, leaving the cumulative trade deficit at $ 119.956 billion.
Meeting the export target of $325 billion for fiscal 2013-14 could be now tough, but the Commerce Ministry is optimistic of achieving the target with signs of recovery in global economy. Meanwhile, the government expects to keep the current account deficit down under $50 billion in the fiscal year to March 2014. The shortfall was a record $87.8 billion in the previous fiscal which had precipitated a record fall in the value of the rupee against the dollar last summer.