Trade ties

New Delhi, July 2: India’s export growth slowed to 18.07 per cent in May 2007 at $11.86 billion. Imports, on the other hand, rose 26.36 per cent to $18.07 billion. Growth in exports was at 23.06 per cent in April.

According to official data released today, the country’s trade deficit stood at $6.21 billion in May 2007.

Oil imports dropped 2.99 per cent to $4.74 billion in May this fiscal from $4.88 billion in the same month of the previous year.

Fuelled by fast economic growth, non-oil imports went up 41.58 per cent to $13.33 billion against $9.42 billion.

Exports grew at a moderate pace of 18.07 per cent in May, while non-oil goods pushed overall imports by 26.36 per cent, inflating trade deficit by over 45 per cent compared with the year-ago period.

In May, exports stood at $11.86 billion against $10.04 billion, while imports rose to $18.07 billion from $14.30 billion, leaving a trade deficit of $6.21 billion against $4.26 billion in May 2005.

“The export performance in May reflects execution of old orders by exporters. The impact of rupee rise may be visible from July onwards,” said commerce and industry minister Kamal Nath.

Cumulatively for April-May this fiscal, exports increased 20.37 per cent to $22.43 billion. Imports for this period totalled $35.71 billion, showing an increase of 33.05 per cent.

Exporters have been making a strong case before the government for relief given the over 8 per cent increase in the value of rupee against dollar in the past few months.