Trade deficit hits 1-year low at $17.75 billion; exports, imports contract

Exports dropped in 19 of 30 sectors in January

India’s trade deficit in January hit its lowest in a year at $17.75 billion, as both merchandise exports and imports contracted for the second consecutive month amid tepid external demand and a sharp decline in gold imports.

Merchandise exports dropped 6.5 per cent year-on-year (YoY) to $32.91 billion last month following a slowdown in demand from key developed economies due to monetary policy tightening and high inflation, data released by the commerce and industry ministry showed on Wednesday. On a sequential basis, the decline was 4.5 per cent.

Imports contracted 3.6 per cent YoY to $50.66 billion. The decline was sharper on