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India’s trade deficit in December narrowed to a three-month low of $19.8 billion amid an import slowdown due to falling commodity prices. Merchandise exports during the month grew 0.97 per cent over a year earlier to $38.45 billion, contrary to the trend of a slowdown so far this financial year, showed data released by the commerce department on Monday. Merchandise imports, meanwhile, grew 8.45 per cent to $58.25 billion, boosted by gold imports. Exports of non-petroleum, non-gems & jewellery — also known as core exports — grew 5.4 per cent during the month to $28.67 billion, while core imports declined 0.2 per cent to $37.96 per cent. India’s merchandise exports shrank in 13 of the 30 sectors in December. Key export items that saw a decline included petroleum products (17.61 per cent), readymade garments (12.56 per cent), and organic & inorganic chemicals (11.43 per cent). Among key sectors that witnessed growth included gems & jewellery (11.97 per cent), drugs & pharmaceuticals (7.33 per cent), and electronics goods (1.04 per cent). Merchandise imports contracted in 15 of the 30 items, including petroleum products (22.77 per cent), transport equipment (55.11), and precious stones (11.73 per cent).
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