India: Exports remain robust in October
December 1, 2010
In October, exports expanded 21.3% over the same month last year to reach USD 18.0 billion. Although coming in slightly below the 23.2% expansion recorded in September, the reading was the tenth consecutive month of double-digit growth in exports, which suggests external demand remains strong. Owing to the sustained recovery seen since the beginning of the year, exports are nearing pre-crisis levels, with the 3-month sum rising to USD 52.6 billion in October, which is not far from the USD 56.9 peak tallied in July 2008. Meanwhile, growth in imports slowed markedly in September, falling to an annual rate of 6.8% (September: +26.1% year-on-year) to reach USD 27.7 billion. As has been the case in recent months, imports continued to be primarily driven by non-oil imports, which expanded 9.9% over the same month last year. Despite the slowdown in imports, the trade deficit increased from USD 9.1 billion in September to USD 9.7 billion. During the last twelve months, exports amounted to USD 197.8 billion, and thus are poised to exceed the government's target of USD 200 billion set for the current fiscal year, which will end in March 2011.