India s Exports jumped by 12.4 Trade deficit jumped to 10 month high

India's exports jumped by 12.4% to USD 28 billion in May as demand from western developed economies picked up while imports dropped by 11.4% to USD 39.23 billion in the same month. Trade deficit jumped to 10-month high value of USD 11.23 billion in the same month. It was much lower than trade deficit of USD 19.37 billion in May 2013. 

Gold imports declined by 72% to USD 2.19 billion in May compared USD 7.7 billion in the same month last year, which is the main reason behind steep drop in total imports.

Exports in the April-May period of current financial year increased by 8.87% to USD 53.63 billion compared with the same period in the previous fiscal year while Imports dropped by 13.16% in the same period to USD 74.95 billion, resulting in trade deficit of USD 21.32 billion.