The new financial year turned out to be positive, as country's exports rose to its 5 months high of 5.26 per cent to $ 25.63 billion during April.
Imports, however, continued to decline posting a fall of 15 per cent to $35.72 billion during the month, as manufacturing activities failed to pick up.Rise in exports and fall in imports brought down the trade deficit to $10.08 billion in April 2014 as compared to $17.67 billion in April 2013.Engineering, marine and leather goods exports last month recorded growth of 21.25 per cent, 42.18 per cent and 30.42 per cent respectively. Iron ore exports too grew by 23.43 per cent to $ 152 million.
However, gems & jewellery exports dipped by 8 per cent to $ 3.27 billion. Industry experts said that curbs on gold imports are leading to decline in gems & jewellery exports.Gold imports last month declined by 74.13 per cent to $1.75 billion from $6.78 billion in April 2013.Apex exporters body FIEO said that this year the country's exports are expected to register double digit growth and that will help keep trade deficit within the manageable limit."The target of new Foreign Trade Policy should be to increase export to at least $750 billion by 2019. This would require CAGR of 19 per cent per annum and would need major thrust on manufacturing," it said.
In November, overseas shipments had recorded a growth of 5.86 per cent.India missed its export target by about $13 billion in the last financial year even as the trade deficit for 2013-14 shrank to a three-year low of $ 138.59 billion.Exports in 2013-14 stood at $ 312.35 billion.Pharmaceutical and chemical exports grew by 10.4 per cent and 4.13 per cent to $ 1.26 billion and $ 917 million respectively in April.
Electronic and ready-made garment exports too rose by about 4 per cent and 14.3 per cent respectively.However sectors including handicrafts, fruits and vegetables, oil meals, cashew, tobacco, rice, tea and coffee registered negative growth.On the import side, fertilisers, precious & semi-precious stones, iron & steel, transport equipment, electronic goods and silver posted negative growth.Silver and electronic item imports dipped by 26.5 per cent and 5.38 per cent respectively.