India’s exports grew by 19.8% in April while imports jumped 49.1%, government data showed on Monday, indicating a faster industrial expansion and revival of consumer demand especially for gold.
Imports growth accelerated from 45.3% rise in March while exports growth slowed from 27.6% in a month ago.
However, a faster growth in imports widened the trade to $13.25 billion, which is almost three times the amount in the same month last year.
In April, imports of gold surged 211% to $3.57 billion while oil was up 30.1% ($7.36 billion), coal 94.9% ($1.87 billion) and electronic goods 74% ($4.44 billion).
Exports were mainly driven by a 48.8% rise in the shipment of petroleum products at $2.95 billion, while engineering goods were up 28.2% at $6.11 billion, gems and jewellery 15% ($3.97 billion).
During 2016-17, India’s exports grew at its fastest pace in five years by 4.7% to $274.65 billion despite the demonetisation drive that slowed domestic economic activity since November.
The Narendra Modi government is aiming at lifting India’s share in global exports to 5% by 2020, from just 1.6% now.
But rising protectionism in countries such as the United States is threatening to keep exports subdued.
{{/usCountry}}But rising protectionism in countries such as the United States is threatening to keep exports subdued.
{{/usCountry}}Faster exports growth raises chances of some industrial recovery even as domestic demand was crimped by the demonetisation.
India’s stats office estimated GDP growth at 7.1% for 2016-17, much slower than 7.9% in 2015-16.
The finance ministry expects growth to rebound to about 7.5%.