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Exports jump 13 per cent in August, gold imports down to $0.65 bn

Exports jump 13 per cent in August, gold imports down to $0.65 bn

Imports for the month declined 0.68 per cent to $37.05 billion, helping the trade deficit narrow to $10.9 billion.

India's exports rose for the second straight month in August, up 12.97 per cent to $26.14 billion, on improving demand.

According to the data released by the commerce ministry, imports for the month declined 0.68 per cent to $37.05 billion, helping the trade deficit narrow to $10.9 billion.

India's trade deficit stood at $14.7 billion in the corresponding month last financial year.

Commerce and Industry Minister Anand Sharma said exports are picking up because demand is improving in both traditional and new markets. He said measures to promote exports are bearing fruit and hoped the good monsoon would help economic growth this year.

He also said Russia has lifted a ban on import of non-Basmati rice from India.

In what may be a good news for India's policymakers, gold imports in August dipped sharply to $0.65 billion, from $2.2 billion in July.

Imports of the yellow metal and crude oil have fuelled India's trade deficit, which has contributed to the widening current account deficit (CAD).

CAD touched an all-time high of 4.8 per cent of gross domestic product, or $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 financial year.

Export growth had touched a two-year high of 11.64 per cent in July, when it touched $25.83 billion.

With inputs from PTI