India’s exports set a new high in June, while imports showed a welcome slippage from the high levels shown in May, according to the latest foreign trade data.
The oil bill, which had cross the $10 billion mark in the previous month, remained stable at around $10.2 billion in June too.
Proving critics wrong, the exports numbers in June were especially strong, creating a new record for merchandise (goods) export from the country.
Against the previous record of $29.1 billion set in March, June saw $29.2 billion worth of exports.
Imports, however, were uncomfortable high, though they slid off their record peak of $40 billion created in May. In June, India imported a total of $36.9 billion worth of goods — some of which, like Gems and crude oil, are re-exported after processing.
A gap no bigger than $10 billion between India’s exports and imports of goods is essential for the well-being of the country. The trade deficit, however, had risen alarmingly to $15 billion in May this year.
However, in June, it again slid to the comfortable territory by falling to $7.66 billion. The deficit figure is one of the lowest in the last several years.
These, however, are worth only around $100 billion a year, imposing a cap on the size of goods-trade deficit that India can sustain every month at around $10 billion.
India has a target of doubling its exports from around $225 billion in 2010-11 to $450 billion in three years (by 2013-14.)
While both India’s non-oil goods exports and imports more or less match each other, its oil bill is taken care of by its non-goods exports, primarily those of IT and BPO services, tourism earnings etc..