India's exports rose for the second straight month in August, while the trade deficit narrowed as gold imports fell.
Exports climbed 12.97 per cent to $26.14 billion last month and imports declined 0.68 per cent to $37.05 billion, the Commerce Ministry said.
The trade deficit narrowed to $10.9 billion in August from $14.7 billion in the corresponding month last fiscal.
Gold imports dipped sharply to $0.65 billion in August from $2.2 billion in July.
Commerce and Industry Minister Anand Sharma said exports are picking up because demand is improving in
The minister also said Russia has lifted a ban on import of non-Basmati rice from India.
Export growth had touched a two-year high of 11.64 per cent in July, when it touched $25.83 billion.
Imports of gold and crude oil have fuelled India's trade deficit, which has contributed to the widening current account deficit.
The CAD touched an all-time high of 4.8 per cent of gross domestic product, or USD 88.2 billion, in 2012-13.
The government proposes to bring down the CAD to 3.8 per cent of GDP, or $70 billion, in the current fiscal.