New Delhi: Exports grew in double digits for the second month in a row in June at 10.22 percent, but a rise in gold imports pushed the trade deficit to 11-month high of USD 11.76 billion.
Exports in June stood at USD 26.47 billion as compared to USD 24.02 billion in the same month last year. It is the for the third consecutive exports have registered a growth in June. In May and April, the growth was 12.4 percent and 5.26 percent, respectively.
The sectors that put up a good show include textiles (14.39 percent), petroleum products (38.3 percent), engineering (21.57 percent), leather (15 percent), marine products (27.49 percent), oil seeds (44.4 percent) and tobacco (31 percent).
Imports increased by 8.33 percent year-on-year to USD 38.24 billion in June. The growth in inbound shipment is recorded after 12 months. The previous time imports registered a rise was in May, 2013 when it grew by 6.99 percent.
According to exporters' body Fieo, outbound shipments have registered double-digit growth on account of improvement in the global demand.
"Demand is improving in advanced as well as in emerging markets. The figure is encouraging and we expect it to continue. This fiscal exports will be better than the previous fiscal," Fieo President Rafeeq Ahmed said.
In April-June period, exports grew by 9.31 percent to USD 80.11 billion.
The 10.22 percent growth in June, however, is lower than the 12.4 percent expansion witnessed in May.
Trade deficit of USD 11.76 billion is a 11-month high. The previous high was USD 12.2 billion recorded in July last year.
It was USD 11.23 billion in May. In June last year, it stood at USD 11.28.
The trade deficit rose in June as gold imports jumped 65.13 percent to USD 3.12 billion from USD 1.88 billion in the same month last year, after registering a negative growth since October last year.
In October, 2013, gold imports stood at USD 1.3 billion, registering a growth of 62.5 percent.
