India's exports jumped by 56.9 per cent year-on-year to $25.9 billion in May maintaining the growth momentum that began last fiscal.
Along with rising exports, the imports too went up by 54.1 at $40.9 billion during the month, pushing up the trade deficit to $15 billion during May. Imports grew highest in the last four years.
"I am sure, we will continue with strong performance so that current account deficit can be kept manageable," Commerce and Industry Minister Anand Sharma said.
Commerce Secretary Rahul Khullar said the trade gap is much larger than it had been in the last 2-3 years.
"It is a matter of concern. It is because of the volatility in petroleum prices. The oil prices have skyrocketed because of number of factors including the developments of last few months in Middle East," Sharma said.
The minister said that India being a major importer of petroleum products, the situation needs to be carefully watched.
The country's petroleum and oil lubricants imports in May increased by 18 per cent to $10.16 billion.
Federation of Indian Export Organisation too said the high trade deficit of $15 billion is a cause of concern and that domestic manufacturing should be encouraged to raise output.
". . .but I should be ready for the eventuality that this (increasing trade gap) may turn out to be a feature for the next couple of months," Khullar said, adding, "If it is a recurrent feature of the next couple of months then I have to be concerned".
However, the secretary said that it is not the time to start 'ringing alarm bells'.
During April-May 2011-12, exports increased by 45.3 per cent to $49.8 billion.
During the first two months of 2011-12, sectors which registered healthy growth include engineering (115 per cent), electronics (80 per cent), drugs (68 per cent), petroleum (64 per cent), gems and jewellery (23 per cent), ready made garments (31 per cent), chemicals (44 per cent) and leather (21 per cent).
However,