India: External sector remains strong although pace of growth moderates
August 1, 2011
In June, the trade balance incurred a deficit of USD 7.7 billion, according to provisional data released on 1 August. The figure was nearly half the USD 15.0 billion deficit recorded in May but well above the USD 5.9 billion tallied in the same month last year. The pace of both exports and imports moderated. Exports totalled USD 25.9 billion, which represents growth of 46.4% over the same month last year (May: +56.9% year-on-year). Meanwhile, imports reached USD 36.9 billion, which was 42.5% higher than the value recorded in the same month last year (May: +54.4% yoy). The expansion continued to be underpinned by non-oil imports, which expanded 47.8% year-on-year, while oil imports rose 30.0%. The government has set a target of USD 500 billion for the fiscal year 2013/14, which is approximately twice the current level of exports.