Exports surge 17% in Oct, fastest pace in 28 months

Trade deficit widens to $27 bn as imports hit a high

- SHREYA NANDI

India's merchandise exports grew at the fastest pace in 28 months in October, witnessing double-digit growth of 17.3 per cent year-on-year (Y-o-Y) to touch $39.2 billion, due to inventory build-up in the Western countries ahead of the Christmas season.

However, the imports hit an all-time high of $66.34 billion in October, growing at 3.9 per cent, leading to a widening of the trade deficit, or the gap between imports and exports, to $27.1 billion from $20.8 billion in September, data released by the commerce department on Thursday showed.

On the brighter side, non-petroleum and non-gems and jewellery exports, an indication of a clearer parameter of exports' health and domestic manufacturing, grew 27.7 per cent to touch $31.36 billion in the previous month.

Exports growth was driven by higher demand for items such as engineering goods (39.4 per cent), chemicals (27.35 per cent), electronic goods (45.7 per cent), readymade garments (35.1 per cent) and rice (85.8 per cent).

On the other hand, exports of petroleum products, with a 12 per cent share in India's export basket, continued to contract in October (-22.1 per cent) at $4.6 billion due to sustained decline in global crude oil prices.