New Delhi, March 1 (IANS) India’s exports grew 10.1 percent in January at $25.34 billion, official data showed Thursday, widening the monthly trade deficit to $14.76 billion.
The rate of growth in exports has improved in January, compared to 6.76 percent increase seen in December and 3.87 percent in November.
But is 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 $242.79 billion as compared to $196.63 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 $300 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 $40.1 billion and in the first ten months of the current fiscal they have risen by 29.4 percent to $391.45 billion.
Trade deficit during April-January was at $148.66 billion and the government expects this to go beyond $160 billion for the year ending March 31.