India’s merchandise exports rose 17.3% to $39.2 billion in October from a year earlier, the highest level in the past 28 months. This was due to an improvement in demand from developed countries before Christmas and higher exports of products such as engineering, chemical and electronic goods.
India’s imports rose to $66.34 billion last month, up 3.9% from last year. Along with this, the trade deficit also increased to $27.1 billion, up from $20.78 billion in September. The trade deficit in October of last year was $30.42 billion.
Exports from labor-intensive sectors, such as ready-made garments, saw growth of more than 35%. Commerce Secretary Sunil Barthwal said although the global situation is volatile, with recessionary trends in Western countries and bottlenecks in global trade routes, Indian exporters are still performing well in many sectors. If this trend continues, India could surpass the export target of $800 billion this year and create a new record.
ICRA chief economist Aditi Nair said the main reason for the rise in trade deficit is rising crude oil imports and rising gold imports during the festive season. Between April and October, India’s non-oil exports reached $211.3 billion, an all-time high.
Indian Export Organizations president Ashwini Kumar said disruptions in global trade and fluctuations in crude oil and metal prices have helped boost the value of exports.
