Exports jumped over 13 per cent during October,the highest in two years,riding on the recovery in the US and EU,Indias principal export markets. This is the fourth double-digit month-on-month growth in a row.
The trade deficit,however,increased month-on-month on account of a rise in gold imports during the festive season. Exports grew 13.47 per cent during the month at $27.2 billion while imports declined 14.50 per cent at $ 37.8 billion,resulting in a trade deficit of $10.5 billion as against $20.2 billion during the same period last year,commerce secretary SR Rao told reporters,while releasing the data. The trade deficit was higher compared to September when it stood at $6.76 billion. The import of gold and silver increased 62.5 per cent to $1.3 billion during the month compared to a mere $0.8 billion in September,leading to a higher trade deficit.
The growth in import of the yellow metal was due to clarity on RBIs 80:20 scheme for gold imports. Due to lack of clarity,imports were being held up by customs. However,for the 7-month period this fiscal,gold and silver imports declined by 12.86 per cent to $24 billion compared with $28 billion in same period last year.
Expressing confidence that the export target of $325 billion would be achieved,Rao said that major exporting sectors including engineering,textiles,gems and jewellery and electronic goods,have performed well. Engineering exports grew 36 per cent to $5.6 billion during the month. Exports have shown a significant increase and imports fell significantly…All the regions are doing well, Rao said.