Thaindian News

New Delhi, July 1 (IANS) India’s merchandise exports in May rose by 35 percent to $16.14 billion compared to $11.9 billion in the year-ago period, the government said here Thursday.
Data released by the commerce ministry showed imports for the month grew by 38.5 percent to $27.4 billion year-on-year.

The country’s trade deficit stood at $21.7 billion during April-May 2010, higher than the $14.5 billion reported in the same period last year.

Officials attributed the export growth to low base effect.

During April-May 2010, exports stood at $33 billion, a 35.7 percent rise over the year-ago period, while the cumulative value of import in the first two months of the current fiscal increased 40.9 percent at $54.7 billion.

Oil imports in May were valued at $8.8 billion, which was 66.7 per cent higher than oil imports valued at $5.3 billion in the corresponding period last year. Non-oil imports were estimated at $18.6 billion, 32.3 per cent higher than that in May 2009.

India is targeting around 15 percent export growth in this financial year.

The country’s exports had dropped 4.7 percent in fiscal 2009-10 as demand slumped due to the global meltdown.

In April, exports had risen 36 percent to $16.9 billion as demand for gems and textiles increased. Imports for the month jumped 43 percent from a year earlier to $27.3 billion and the trade deficit stood at $10.4 billion.

The total import in April-May was $54.7 billion, resulting in a trade deficit of $21 billion.