Exports rises at seven-month high pace of 12.4% in May 2014

Trade deficit as a percentage of GDP was lower at 1% in April-May 2014 compared to 1.8% in April-May 2013.

India's merchandise export accelerated at seven-month high and double-digit pace of 12.4% to US$ 28 billion in May 2014. However, the merchandise imports continued to decline for the twelfth straight month at 11.4% at US$ 39.23 billion in May 2014, helping the trade deficit to narrow to US$ 11.23 billion in May 2014 compared to US$ 19.37 billion in May 2013.

The decline in merchandise imports was led by 17.9% dip in non-oil imports to US$ 24.768 billion, while the oil imports rose 2.4% to US$ 14.46 billion in May 2014. The oil import share in total imports stood at 36.9% in May 2014 compared to 31.9% in May 2013. India's basket of crude oil surged 5.7% to US$ 106.94 per barrel in May 2014 over May 2013.

The merchandise exports in Rupee terms moved up 21.2% to Rs 166045 crore, while imports declined 4.5% to Rs 232673 crore in May 2014 over May 2013. The trade deficit narrowed to Rs 66628 crore in May 2014 compared to Rs 106578 crore in May 2013.

During April-May 2014, India's merchandise export increased 8.9% to US$ 53.63 billion, while merchandise imports fell 13.2% to US$ 74.95 billion. The decline in imports was driven by 19.7% fall in non-oil imports to US$ 47.51 billion in April-May 2014.

With the higher growth in exports, India's merchandise trade deficit narrowed to US$ 21.32 billion in April-May 2014 from US$ 37.05 billion in April-May 2014. Trade deficit as a percentage of GDP was lower at 1% in April-May 2014 compared to 1.8% in April-May 2013.

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