Exports climb 29% in May on higher global demand

Higher crude prices contribute to 28% rise in imports

India's exports rose 29.43 per cent during May to $5.81 billion because of a global pick-up in demand. Exports for the first two months of the current fiscal were estimated to have grown 24.86 per cent to $8.67 billion.

According to provisional trade data released by Commerce and Industry Minister Kamal Nath on Monday, imports rose 28.22 per cent in May to $7.73 billion, compared with $6.03 billion during May 2003.

During April-May 2004, imports were estimated to be 25.79 per cent higher at $14.61 billion.

The increase in imports was mainly on account of higher crude oil prices, which pushed up India's import bill by 47 per cent to $4.6 billion during April-May this year.

Non-oil imports during the first two months of the fiscal were valued at $10.01 billion, 17.96 per cent higher than in April-May 2003-04.

The faster rise in imports widened the trade deficit to $3.78 billion during the first two months of 2004-05, against $2.94 billion in April-May 2003-04.

Trade figures
	May '03  ($ mn)	May '04 ($ mn)	Change (%)
Exports	4,491.11	5,812.99	29.43
Imports	6,026.39	7,727.30	28.22
Trade deficit	1535.28	1,914.31	-
	Apr-May '03  ($ mn)	Apr-May '04  ($ mn)	Change  (%)
Exports	8,668.03	10,823.19	24.86
Imports	11,612.91	14,607.50	25.79
Trade deficit	2,944.88	3,784.31	-

"Imports have led to a greater manufacturing activity in the economy, while exports have picked up because of the global economic recovery," Kamal Nath said at a press conference.

Exports of leather (7 per cent) and marine products (6 per cent) were the only two product categories that showed a decline in May 2004, he said.

On the other hand, items like gems and jewellery (43 per cent), textiles (14 per cent), cotton yarn and fabric (11 per cent), man-made yarn and fabric (36 per cent) and engineering goods (7 per cent), which constitute a bulk of India's total exports, grew steadily during May.

Petroleum products and iron ore exports shot up 23 per cent and 188 per cent, respectively, the minister said.