Exports rise 13.5% in October

Exports clocked their fastest pace of growth in two years, rising 13.5% to $27.3 billion during October, as demand for goods picked up in the US and Europe and Indian exporters gained from a sharp depreciation of the Indian rupee.
Gold and silver imports fell almost 80% to around $1.4 billion compared to $6.9 billion in October 2012, resulting in trade deficit narrowing to around $10.5 billion, nearly half the level seen a year ago. Oil imports too provided some comfort, rising 1.7% to $15 billion.
Trade deficit has been a major policy headache for the government and investors have raised concerns over financing the huge gap. In recent months, however, with a fall in imports and resurgence in exports, trade deficit is seen to be more manageable, prompting finance minister P Chidambaram to lower the annual estimate for current account deficit to $60 billion or lower, compared to $70 billion projected earlier.
On the trade front, the government is particularly pleased with most products, including engineering and textiles, staging a comeback.
Engineering exports rose 36% to $35 billion, making up for the drop in oil imports that declined to $5.4 billion during October, compared to $6.1 billion a year ago.
But the export rebound has not stopped trade lobby groups from demanding succour. CII, for instance, demanded an increase in duty drawback rates, which are meant to refund taxes and levies. During April-October 2013, exports rose 6% to $179 billion, while imports fell close to 4% to $270 billion. Even during the this period, trade deficit narrowed to just under $91 billion, from $112 billion a year ago.