New Delhi: India’s exports grew by 12.4 per cent in May, highest in six months, on improvement in the global demand, which will be cheered by the new government.
However, trade deficit rose to a 10-month high of $11.2 billion in May against $10 billion in April. But it was way less than $ 19.37 billion seen in May 2013.
Imports dipped by 11.41 per cent at $ 39.23 billion. The decline was almost entirely driven by lower gold imports. Petroleum product exports, engineering goods and ready-made garments, all of which grew at over 20 per cent were the top three contributors to the strong export growth in May.
While oil imports grew by 2.4 per cent in May, imports excluding oil and gold showed positive growth for the first time in 10 months, according to rating agency Crisil. Gold imports fell to $2.2 billion in May from $7.7 billion a year ago due to restrictions on gold import.
“It is an encouraging sign. This is the first time in the last six months that we have recorded a double digit growth,” said commerce secretary Rajeev Kher.
