Exports grow the highest in 5 months

Healthy growth in engineering, marine and leather goods shipments pushed export growth to 5-month high of 5.26 per cent in April, while declining gold imports narrowed the trade deficit to $10 billion.

The deficit was $17.6 billion in April 2013.

Exports in the first month of the current fiscal aggregated at $25.63 billion, while imports declined by 15 per cent to $35.7 billion.

Oil and non-oil imports in April declined by 0.6 per cent and 21.5 per cent to $12.97 billion and 22.74 billion respectively.

Engineering, marine and leather goods exports last month recorded growth of 21.25 per cent, 42.18 per cent and 30.42 per cent respectively. Iron ore exports too grew by 23.43 per cent to $152 million.

However, gems & jewellery exports dipped by 8 per cent to $3.27 billion. Industry experts said that curbs on gold imports are leading to decline in gems & jewellery exports.

Gold imports last month declined by 74.13 per cent to $1.75 billion from $6.78 billion in April 2013.

Apex exporters body FIEO said that this year the country's exports are expected to register double digit growth and that will help keep trade deficit within the manageable limit.

"The target of new Foreign Trade Policy should be to increase export to at least $750 billion by 2019. This would require CAGR of 19 per cent per annum and would need major thrust on manufacturing," it said.

In November, overseas shipments had recorded a growth of 5.86 per cent.

India missed its export target by about $13 billion in the last financial year even as the trade deficit for 2013-14 shrank to a three-year low of $138.59 billion.

Exports in 2013-14 stood at $312.35 billion.