India’s trade deficit rose to a 10-month high of USD 11.23 billion in May even as exports grew by 12.4 per cent, highest rate in six months, on improvement in the global demand.
Trade deficit, the difference between earnings from exports and outflow on account of imports was USD 10.09 billion in the previous month. It was, however, lower than USD 19.37 billion in May 2013.
Helped by healthy growth in key sectors such as engineering, petroleum products and garments, exports during the month increased USD 28 billion from USD 24.9 billion in May 2013. However, imports dipped by 11.4 per cent at USD 39.23 billion.
“It is definitely an encouraging sign. This is the first time in the last six months that we have recorded a double digit growth. If this trend sustains then I am sure we are reviving…It seems that they (export products) are now acquiring there natural levels, Commerce Secretary Rajeev Kher said.
He said that appreciating rupee was not the factor of the double digit growth in exports.
“There is a positive spirit and if this trend continues the next month then I will definitely be saying that there is a revival (in global demand). So, I would like to see the next month also,” he added.
When asked about the exports target for 2014-15, he said: “We are working towards something like USD 1 billion exports on a daily basis”.
Gold imports in May dipped by 72 per cent to USD 2.19 billion, as against USD 7.7 billion in May 2013.
In the April-May period of this fiscal, exports grew by 8.87 per cent to USD 53.63 billion. Imports during the period dipped by 13.16 per cent to USD 74.95 billion, leaving a trade deficit of USD 21.3 billion.