Trade deficit widens to USD 20.1bn in May 2013 - Angel Broking

Provisional data released by the commerce ministry shows that India's exports declined by 1.1% yoy in May 2013 despite a 6.6% yoy decline a year ago. Growth in imports during the month continued to be led by 9.1% yoy growth in non-oil imports (as against a 15.5% yoy de-growth in May 2012). Oil imports reported modest 3.0% yoy growth during the month as against 10.9% yoy in May 2012. The total imports touched a record-high of USD44.6bn with 7.0% yoy growth during the month. As a consequence, the monthly trade deficit widened to USD20.1bn, a seven month high, from USD17.8bn in the previous month and USD17bn in May 2012. The sharp INR depreciation since May 2013 could offset the positive impact of softening global commodity prices. The trade deficit for April - May of 2013-14 is estimated at USD37.9bn, higher than the deficit of USD30.9bn during April - May of 2012-13.

According to media reports gold and silver imports are likely to have soared by about 90% following a 138% surge in April 2013. We continue to believe that this can be mainly attributed to front-loaded demand for gold.

Source : Equity Bulls

Keywords