India exports jump 46% in June

NEW DELHI, (AFP) - India’s exports surged 46 percent to $29.2 billion in June, provisional data showed Friday, helped by mounting demand in US and European markets.

The year-on-year rise came as the key economic regions improved and India’s strategy of diversifying its export markets to embrace Latin America and Africa also paid off, a senior government official said.

“Virtually all sectors grew well,” Commerce Secretary Rahul Khullar told reporters in New Delhi, describing the figure as “very high”.

The export sectors that posted strong growth included engineering, petroleum products, gems and jewellery and electronics.

Asia’s third-largest economy is aiming to more than double its merchandise exports in three years.

Imports in June grew 42.4 percent to $36.9 billion, leaving a trade deficit of $7.7 billion for the month.

During the first quarter of the financial year from April to June, exports surged 45.7 percent to $79 billion while imports jumped 36.2 percent to $110.6 billion.

India hopes to attain $500 billion in export revenue in the year through March 2014, which will require annual export growth of 26.7 percent, according to the commerce ministry.

India’s exports in the last fiscal year to March 2011 grew 37.6 percent to a record $245.9 billion as demand for made-in-India goods picked up following the global financial crisis.

India has relied mainly on domestic consumption to drive its economy but analysts say higher exports are needed to help the country attain its goal of double-digit growth.