India's exports grew 10.1 percent in January at USD25.34 billion, official data showed on March 1, widening the monthly trade deficit to USD14.76 billion. The rate of growth in exports has improved in January, compared to the 6.76 percent increase seen in December and the 3.87 percent in November. But is still substantially lower than the average for April-January at 23.47 percent.
Fragile economic conditions in Europe and the US have been impacting exports. The cumulative value of exports for the period April-January increased to USD 42.79 billion as compared to USD196.63 billion during the corresponding period of previous year, according to data released by the ministry of commerce and industry.
The government has targeted increasing exports to USD300 billion in the fiscal ending March 31. However, analysts say that given the sharp decline in exports growth in the third quarter of the fiscal, it may not be possible to achieve the target. The more worrying trend is a sharp increase in imports despite moderation in exports growth, which has widened the trade deficit. In January, imports rose 20.25 percent to USD40.1 billion and in the first ten months of the current fiscal they have risen by 29.4 percent to USD391.45 billion. Trade deficit during April-January was at USD148.66 billion and the government expects this to go beyond USD160 billion for the year ending March 31.