A sharp deceleration in imports pulled India’s trade deficit in April to its lowest level in a year despite 3.2 percent year-over-year growth in exports.
The Commerce Ministry on Thursday said the trade gap in April, the first month of fiscal 2012-13, was estimated at $13.4 billion. Exports rose to $24.5 billion, while imports grew 3.8 percent to $37.9 billion.
Officials said the export growth was largely led by engineering goods, pharmaceuticals, chemicals and electronics.
The latest provisional trade figures somewhat ease New Delhi’s concerns over a growing trade imbalance after the Commerce Department’s recent report showed the country’s trade deficit widened in fiscal 2011-12, which ended March 31, to its highest level, with imports jumping 32.1 percent. Last fiscal year’s imbalance was $185 billion, 77 percent higher than in 2010-11.
India exported a record $303.7 billion worth of goods in 2011-12 and aims to push the country’s outbound trade volume to $500 billion by 2014.