Exports grow 5.2% in April, trade gap narrows to $10.09b
May 10 2014 , New Delhi
Government trade data for the first month of the financial year Friday showed exports volume in April fell by 3.15 per cent from the March level to $25.63 billion. Imports in April stood at $35.72 billion.
April gold imports fell by 74.13 per cent on year to $1.75 billion from $6.78 billion in the same month last year, resulting in a sharp drop in overall imports.
Icra senior economist Aditi Nayar said April trade deficit was broadly in line with expectations, with a combination of lower gold imports and higher exports of engineering goods helping narrow the gap relative to April 2013.
Exports rose year-on-year in April, benefiting partly from the base effect. This follows two months of contraction in year-on-year terms, as the February-March period of 2013 had witnessed higher shipments prior to the expiry of various export incentives.
Merchandise exports are expected to continue positive growth this quarter, benefiting from healthy global demand and a stable rupee, analysts said.
Apart from engineering exports, which grew by 21 per cent, other performing sectors in April were leather, ceramics, oilseeds, marine products, iron ore, jute and textiles.
The government is yet to fix an exports target for this financial year. India clocked $312 billion exports in 2013-14, just short of a modest target of $325 billion.