India's exports surged by 29.6 per cent in May from the same month a year earlier to $9.36-billion but the trade deficit swelled on rising oil import costs, the Trade Ministry said Monday. The deficit for May, the second month of the fiscal year, rose almost 6.1 per cent from May 2005 to 3.84 billion dollars.
Imports rose 21.7 per cent to 13.19 billion dollars with oil imports accounting for 4.15 billion dollars, an increase of 27.3 per cent from the same month a year earlier.
India imports about 70 per cent of its energy needs.
In April exports stood at 8.35 billion dollars while imports were valued at 12.56 billion dollars for a trade deficit of 4.21 billion dollars.
The Trade Ministry has forecast a 20 per cent rise in exports for the current fiscal year ending March 2007 to 120 billion dollars as the country earns more from services such as outsourcing and manufacturing.
For the year ended March 2006 annual exports jumped 25 per cent to cross the 100-billion-dollar mark.
India's share of global trade stands at just under one per cent.
marketing@alchempro.com
