India's trade deficit in January narrowed to US$9.92 billion versus US$18.97 billion in the corresponding month of last year, thanks to steep fall in imports and a considerable increase in exports.

According to data released by the trade ministry, the country's imports slipped 18.07 per cent year-on-year to $36.57 billion in January, helped by a 77 per cent year-on-year decline in imports of gold and silver. Oil imports slipped
10.1 per cent to $13.19 billion. It was the steepest decline recorded since March last year.

The country's merchandise exports jumped 3.79 per cent year-on-year to $26.75 billion. In December, merchandise exports had grown at an annual rate of 3.5 per cent.

However, exports seem to have lost momentum because exports had been increasing at a double-digit rate until October last year.

Sanjay Budhia, Chairman of CII National Committee on Exports, urged the government to take more steps to help exporters, citing unfavorable economic conditions in the United States and the euro zone.

Commenting on the latest trade data, Budhia said, "We hope the Indian government will help the exporters by providing help by way of including more products and countries for focus product scheme and focus market scheme."

He also urged the government to relook at the SEZ Policy and Duty Drawback Rates and VAT Refund scheme.