New Delhi: Goods
exports
rose 9% to $38 billion in May, while
imports
were 7.7% higher at nearly $62 billion, pushing up India's
trade deficit
to $23.8 billion, highest in seven months.
Exports growth has been uneven and the latest numbers pegged the growth at the highest in three months, with govt hopeful of the trend continuing. "I feel that this positive trend will continue.
Things are looking better and optimistic for the trade sector," commerce secretary Sunil Barthwal told reporters. He said that inflation in advanced economies is slowing and it would help further push purchasing power that will raise demand for imports.
Asked about the higher trade deficit, he said: "I do not consider trade deficit per se as bad as long as you have FDI flowing in, foreign exchange coming in and if you are balancing it through other means. Second, we should also look at the growing services exports...then we should not unnecessarily be worried about the trade deficit in merchandise."
Petroleum products, electronics, largely mobile phones, pharmaceuticals and plastics were among sectors that saw the highest growth. On the import front, pulses imports surged 2.8 times to $371 million in May as the govt shipped large quantities of dal to cool down domestic prices and rein in inflation
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