India s Exports jump 12.97 to USD 26.14 billion in August trade deficit

India-s exports jumped by 12.97% in August 2013 to USD 26.14 billion compared to same month last year. With this India-s export registered double digit growth for the second consecutive month. At the same time, Imports dropped by 0.68% to USD 37.05 billion in August to lower Gold imports, which lowered trade deficit to USD 10.9 billion. Gold imports dropped to just USD 0.65 billion in August compared to USD 2.20 billion in the previous month on July.

Total exports during April-August period of current financial year increased by 3.89% to USD 124.46 billion compared to USD 119.771 billion during same duration last year while total Imports grew by 1.72% to USD 197.79 billion. Trade deficit for April-August duration marginally declined to USD 73.36 billion compared to USD 74.67 billion during same period last year.

Indian Government and RBI have taken some measures to reduce Gold import in order to reduce trade deficit, which are the main reasons behind steep drop in gold imports. Also lower trade deficit is good for India which has been struggling with record high current account deficit. The CAD touched an all-time high of 4.8% of GDP, or USD 88.2 billion, in previous financial year 2012-13.