Tuesday, September 17, 2013: Improvement in the global situation led to the rise in Indian exports to a two year high of 13 per cent in the month of August, thereby making the trade deficit fall to a four month low of $11 billion coupled with fall in gold imports. Due to gold imports, the rupee was depreciating and the current account deficit was increasing but as of now gold imports have dropped to $0.65 billion in the month of August from $2.2 billion in July. While exports for the second month in a row rose by 12.97 per cent to $26.14 billion, imports decreased by 0.68 per cent to $37 billion.
“Things are improving in Europe and in the US also economic condition is better. So signs of stability in the major economies including the UK and the positive growth in the US will lead to increase in demand,” Anand Sharma, Commerce and Industry Minister told reporters. Moreover, he stated new markets such as Asia-Pacific, Africa and South America have aided in increasing India’s exports. Sharma is hopeful that trade deficit will go down this fiscal from the previous fiscal’s $191 billion.
Apart from putting curb on gold imports, the government is trying to spur electronics manufacturing in order to curtail its imports.
