Imports shrank 11 percent to USD 28.71 billion last month, resulting in a trade deficit of USD 7.63 billion, lowest in eleven months. In February last year, the deficit was USD 6.85 billion.

The deficit would have been lower if gold imports hadn't shot up 85.16 percent last month to USD 2.91 billion.

Overseas shipments of petroleum products shrank 35.18 percent to USD 1.95 billion in January, while that of engineering goods declined by 27.6 percent to 4.98 million.

For the first 10 months of the current fiscal, cumulative exports declined by 17.65 per cent to USD 217.67 billion, as against USD 264.32 billion in April-January period of 2014-15.

Federation of Indian Export Organisations (FIEO) said that going by the trend, "we may end up the fiscal with around USD 260 billion".

Co-Chairman - CII National Committee on  International Trade Policy and Exports Sanjay Budhia said that duty drawback rates should be restored to their original level to compensate for all taxes, duties to boost exports.

Oil imports last month were valued at USD 5.02 billion - 39.01 percent lower than the same month last year. Non-oil imports too dipped by 1.4 percent to USD 23.68 billion.

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