India's trade deficit declined by an estimated 42.56 per cent to $21.32 billion in April-May 2014-15 compared to a deficit of $37.05 billion in the first two months of the 2013-14 fiscal, on the back of a continued decline in imports and a pick-up in the country's exports.
Exports in May recorded the sharpest rise in six months, at $28 billion. Imports, on the other hand, continued to decline, registering a fall of 11.41 per cent at $39.23 billion, mainly because of continued restrictions on gold imports, data released by the commerce ministry showed.
The trade deficit shrank 42 per cent to $11.23 billion during the month.
Exports during May 2014 were valued at $28.00 billion (Rs166,045.09 crore) which was 12.40 per cent higher in dollar terms and 21.17 per cent higher in rupee terms than exports worth $24.91 billion (Rs137,035.13 crore) during May 2013.
The cumulative value of exports for the period April-May 2014-15 stood at $53.63 billion (Rs320,763.69 crore) against $49.26 billion (Rs269,460.46 crore) in April-May 2013-14 - a growth of 8.87 per cent in dollar terms and a 19.04 per cent growth in rupee terms.
Imports during May 2014 were valued at $39.23 billion (Rs232,672.72 crore) showing a negative growths of 11.41 per cent in dollar terms and 4.49 per cent in rupee terms against imports valued at $44.28 billion (Rs243,612.77 crore) in May 2013.
Cumulative imports for the period April-May 2014-15 stood at $74.95 billion (Rs448,266.65 crore) against $86.31 billion (Rs472,131.36 crore), down 13.16 per cent in dollar terms and a negative growth of 5.05 per cent in rupee terms over the same period last year.
Import of crude oil, the single biggest item in the country's import basket, was up 2.5 per cent in May 2014 at $14.47 billion compared to oil imports valued at $14.12 billion in May 2013.
Oil imports during April-May 2014-15 were valued at $27.44 billion, which was 1.0 per cent higher than oil imports worth $27.17 billion in the corresponding period last year.
Non-oil imports during May 2014 were estimated at $24.77 billion, which was 17.9 per cent lower than non-oil imports of $30.17 billion in May 2013.
Non-oil imports during April-May 2014-15 were valued at $47.51 billion which was 19.7 per cent lower than the level of such imports valued at $59.14 billion in April-May 2013-14.