By Sarita Chaganti Singh
NEW DELHI (Reuters) - India's merchandise trade deficit in January hit its lowest in a year at $17.75 billion, according to a Reuters calculation based on export and import data released by the government on Wednesday.
The trade deficit in January was down from $23.76 billion in the previous month.
January merchandise exports were $32.91 billion, compared with $34.48 billion in December, while imports fell to $50.66 billion from $58.24 billion, data showed.
The trade deficit for April-January widened to $232.95 billion from $153.78 billion a year ago.
Among key exports during this period, petroleum products, electronic goods and chemicals continued to be higher than a year ago but weaker global demand resulted in a drop in outbound shipments of cotton, engineering goods, iron ore, and gems and jewellery.
Within imports, petroleum and crude products saw the sharpest increase with a more than 53% jump, followed by coal and electronic goods. However, imports of gold were down over 11%.
Economists have said a high trade deficit is seen as one of key downside risks to Indian economy, which is currently one of the fastest growing among major economies.
Indian Trade Secretary Sunil Barthwal said China's economic revival will likely benefit Indian exports and it has also asked some of the government departments to curb imports of items available locally.
India is also in talks with Reserve Bank of India, commercial banks and other stakeholders to make rupee trade more attractive and it is encouraging rupee trade with many countries including Sri Lanka, Bangladesh and South Africa, Barthwal said.