Oct exports highest in two years; trade deficit jumpshttps://indianexpress.com/article/news-archive/web/oct-exports-highest-in-two-years-trade-deficit-jumps/

Oct exports highest in two years; trade deficit jumps

Gold,silver imports up 62.5% to $1.3 billion in October.

Exports jumped over 13 per cent during October,the highest in two years,riding on the recovery in the US and EU,India’s 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 RBI’s 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.