Exports increase owing to good performance of sectors like petroleum, chemicals, engineering goods.
India's exports grew by 8.32% to US$ 24.01 billion in May, mainly on account of robust performance by sectors like petroleum, chemicals, engineering goods as well as gems and jewellery.
Imports too jumped 33.09% to US$ 37.85 billion last month from US$ 28.44 billion in May 2016, according to the data released by the commerce ministry. A huge jump in gold imports pushed up the trade deficit to US$ 13.84 billion during the month under review from US$ 6.27 billion a year ago. The imports of the precious metal rose 3-fold to US$ 4.95 billion in May compared to US$ 1.47 billion in the same month last year. Exports in April-May increased by 13.83% to US$ 48.64 billion. Imports during the period up by 40.63%.
CAD soars to $3.4 b or 0.6% as imports jump in Q4
The current account deficit soared to US$ 3.4 billion, or 0.6% of gross domestic product (GDP), in the fourth quarter of fiscal 2017, from US$ 0.3 billion a year ago, the Reserve Bank said today. However, on a sequential basis, the gap between forex earnings and expenses, narrowed from US$ 8 billion in the third quarter of FY17.
"The widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit which stood at US$ 29.7 billion, brought about by a larger increase in merchandise imports relative to exports," RBI said. Balance of payments for the full financial year stood at US$ 21.6 billion, while for Q4 the same stood at US$7.31 billion, according to RBI data.
For the full fiscal 2017, CAD narrowed to 0.7% of GDP from 1.1% in the year ago period on the back of a contraction in trade deficit. In the previous fiscal, trade deficit narrowed to US$ 112.4 billion from US$ 130.1 billion in 2015-16. While in the fourth quarter, net foreign direct investment moderated to US$ 5 billion. Net portfolio investment recorded substantial inflow of US$ 10.8 billion in both equity and debt segment, as against net outflow of US$ 1.5 billion in the same quarter of FY16.
In FY17, gross FDI inflows stood at US$ 60.2 billion, higher than US$ 55.6 billion in 2015-16, while net FDI inflows in 2016-17 was at US$ 35.6 billion as against US$ 36 billion in 2015-16. Portfolio investment recorded a net inflow of US$ 7.6 billion in 2016-17 as against an outflow of US$ 4.5 billion a year ago. in fiscal 2017, there was an accretion of US$ 21.6 billion to the foreign exchange reserves as compared with US$ 17.9 billion in 2015-16.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Exports")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}