India's exports grew to $27.03 billion in December 2017 from $26.19 billion in November 2017 and $24.05 billion during the corresponding month of the previous year, official data showed on Monday.According to the Ministry of Commerce and Industry, exports during last month exhibited a growth of 12.36 per cent on a year-on-year (Y-o-Y) basis."Exports during December 2017 have exhibited positive growth of 12.36 per cent in dollar terms vis-à-vis December 2016," the ministry said in a statement."Exports have been on a positive trajectory since August 2016 to December 2017 with a dip of 1.1 per cent in the month of October 2017."The data pointed out that healthy growth in exports was led by "Engineering Goods (25.32 per cent), Petroleum Products (25.15), Gems and Jewellery (2.38), Organic and Inorganic Chemicals (31.36), and Drugs and Pharmaceuticals (6.95)"."Non-petroleum and non-gems and jewellery exports in December 2017 were valued at $20,186.36 million as against $18,013.78 million in December 2016 -- an increase of 12.06 per cent," the ministry said.
However, the country's imports during the month under review also increased to $41.91 billion from $40.02 billion in November and $34.60 billion reported for the corresponding period of the previous year.Segment-wise, the data showed that India's oil imports during December shot up by 34.94 per cent to $10.34 billion, from $7.66 billion in the same month last year.Non-oil imports during last month stood at $31.56 billion with a growth of 17.19 per cent over $26.93 billion in December 2016.Consequently, India's merchandise trade deficit widened to $14.88 billion during last month, as against $10.54 billion in the corresponding period of previous year.
"A sharper than expected rise in imports of gold, and pearls, precious and semi-precious stones, amid a considerable decline in the pace of growth of non-oil merchandise exports, bloated the merchandise trade deficit to a three year high $14.9 billion in December 2017," ICRA's Principal Economist Aditi Nayar said."Nearly 80 per cent of the $7.3 billion YoY rise in merchandise imports in December 2017 was on account of imports of gold, pearls, precious and semi-precious stones, and petroleum, crude and products."