India's exports revival picks up speed in March
NEW DELHI (Reuters) -- A recovery in Indian exports gathered steam in March with a pick-up in demand for engineering and petroleum products, bolstering an economy still recovering from the government's cash clampdown.
However, a surge in gold and crude oil imports widened the monthly trade deficit to a four-month high of $10.44 B, data released by the government showed on Thursday.
Merchandise exports grew 28% to $29.23 B in March year-on-year, while imports rose 45.25% to $39.67 B over the same period.
The export numbers bode well for India's $2-trillion economy that is still smarting from Prime Minister Narendra Modi's decision in November to ban high-value currency notes.
They will also cheer Modi who aims to lift India's share in global trade to 5% by 2020. Indian goods exports currently account for just 1.6% of global trade, compared with nearly 14% for China.
Higher volumes and prices doubled petroleum imports to $9.7 B in March from a year ago. Gold imports surged by more than four times to $4.2 B last month on restocking as well as demand from the marriage and festive season.
The trade deficit for the year ending in March declined to $105.72 B from $118.7 B in the previous year, the data showed.
Thursday's figures come a day after the World Trade Organization (WTO) forecast an annual 2.4% growth in global trade this year despite "deep uncertainty" about economic and policy developments globally, particularly in the United States.
Global trade grew by "an usually low" 1.3% in 2016, the slowest pace since the financial crisis, failing to match even its revised forecast of 1.7% of last September.
Reporting by Manoj Kumar and Rajesh Kumar Singh
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