(Recasts, adds official comments on data and India-UK trade
deal in paras 6, 8, 11)
By Shivangi Acharya and Manoj Kumar
NEW DELHI, May 15 (Reuters) - India's merchandise and
services trade deficit narrowed to a 21-month low in April as
imports dropped partly due to some slackening in demand for
discretionary items and oil in the Asian economy.
The merchandise and services deficit fell to $1.38 billion
compared with $8.37 billion in the same period last year. In
March the overall trade deficit was $6.04 billion.
The merchandise trade deficit in April stood at $15.24
billion, according to a Reuters calculation based on export and
import data released by the government on Monday.
The April trade deficit was lower than the $19.73 billion
recorded in the previous month, and below the $19.50 billion
forecast in a Reuters poll.
April merchandise exports were $34.66 billion, down from
$38.38 billion in March, while imports fell to $49.90 billion
from $58.11 billion, data showed.
"Imports have fallen due to reduced demand for items that
are considered discretionary in nature such a gems and
jewellery. Globally also, demand scenario is not looking good.
Hopefully, things will get better by September," Santosh
Sarangi, head of the directorate-general of foreign trade
(DGFT).
April oil imports fell 2.46% year-on-year to $15.17 billion.
"After the Russia-Ukraine conflict commodity prices had gone
up, which is cooling off now, and you can see that in our
reduced import figures," Sarangi said.
April services exports came to $30.36 billion, while
services imports totalled $16.50 billion.
The rise in services exports has helped India's current
account deficit to shrink more than expected in the
October-December quarter, offsetting weakness seen in goods
exports.
DGFT's Sarangi also said the UK and India are making efforts
to conclude the free trade agreement talks "at the earliest."
The countries missed its initial deadline to conclude talks by
October last year.
(Reporting by Shivangi Acharya and Manoj Kumar, editing by Ed
Osmond and Louise Heavens)
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