India s Exports dropped by 4.5 in June trade deficit drops to give

India-s exports dropped for the second consecutive month in June 2013 as global economic uncertainties continues to hurt demand. But a sharp slowdown in gold import compared to the previous two months has helped check the rising trade deficit. Total exports dropped by 4.56% in June compared to same month last year to USD 23.78 billion. At the same time, total imports dropped by 0.37% in June compared to same month last year to USD 36.03 billion.

A steep decline in import of gold and silver to USD 2.45 billion in June 2013 compared to USD 8.4 billion and USD 7.5 billion in May and April respectively after increase in import duties on gold by the government played a key role to reduce trade deficit to USD 12.2 billion. The fall in trade deficit levels in June has come as a relief for the Government and RBI as it will reduce pressure on Indian Rupee.

Cumulative exports during April-June for financial year 2013-14 dropped 1.41% to USD 72.45 billion and cumulative imports during the period were increased by 5.99% to USD 122.6 billion. The trade deficit for April-June of financial year 2013-14 was at USD 50.18 billion which was much higher than the first quarter deficit of the previous fiscal year at USD 42.21 billion.