Millennium Post

Trade deficit widens to 7-month high as May exports dip 1.1%

After growing for four consecutive months, India's exports contracted by 1.1 per cent year-on- year in May to $24.5 billion.
Exports in May 2012 stood at $24.77 billion.

Imports grew by 6.99 per cent to $44.65 billion during the period, leaving a high trade deficit of $20.1 billion which has widened to a seven-month high in May as gold imports surged. But economists expect newly announced measures to dampen demand for the precious metal in coming months and narrow the shortfall.

'High trade deficit is worrisome. It is high because of increase in gold and silver import,' Commerce Secretary S R Rao told reporters here.
Gold and silver imports, during the month under review, grew by 89 per cent to $8.39 billion.

However, exports during April-May 2013 grew by 0.21 per cent to $48.67 billion. Imports during the period was up by 8.88 per cent to $86.6 billion. Rao said the main exporting items like textile and engineering are registering healthy growth.

'Textile exports continue to perform well. Engineering sector which was registering negative growth is also performing better,' he said.
Apparel Exports Promotion Council (AEPC) Chairman A Sakthivel said garment sector continues to do well due to various factors.
'The better compliance practices adopted by factories and efforts made by AEPC by organising several fairs overseas have yielded results,' Sakthivel said.

Oil imports during April-May 2013-14 grew by 3.47 per cent to $29.10 billion compared to $28.13 billion in the corresponding period last year.
Non-oil imports increased by as much as 11.84 per cent to $57.49 billion during the period.
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