External sector returning to strength: Economic Survey

India's external sector is returning to the path of strength and resilience, said the Economic Survey for 2014-15 which was tabled in parliament by Finance Minister Arun Jaitley Friday.

According to the annual report card on the state of the country's economy, the external sector is the most favourable since the 2008 global financial crisis and especially compared to 2012-13, when elevated oil and gold imports fuelled a surge in the current account deficit (CAD).

"Global economy is likely to gain strength if lower global crude petroleum prices drive the demand recovery process in emerging markets," the survey said.

The survey, which was tabled a day ahead of the union budget showed that India's merchandise trade, over the last ten years increased manifold from $195.1 billion in 2004-05 to $764.6 billion in 2013-14.

This increase helped to improve India's share in the global exports and imports from 0.8 percent to 1 percent in 2004 to 1.7 percent and 2.5 percent in 2013 respectively.

The economic survey said that the overall trade performance signals an opportune time for withdrawal of import restrictions on gold.

The survey also showed that in 2013-14, India's trade deficit on custom basis declined.

It went down to $135.8 billion from a high level of $190.3 billion in 2012-13 mainly on account of a decline in the growth of imports even though growth in exports was sluggish at 4.7 percent.

"The decline in imports owed to lower growth in oil imports (0.4 percent) and negative growth in gold and silver imports," the survey said.