Snapping the double-digit growth rate for the second time, merchandise exports rose 3.5 per cent in December 2013 to $26.3 billion from $25.4 billion in the year-ago period, mainly on account of a fall in exports of petroleum products. Imports dropped 15.25 per cent to $36.5 billion in December 2013, compared to $43 billion in December 2012. Thus, the trade deficit last month narrowed to $10.1 billion, compared to $17.2 billion in the year-ago period, according to data released by the commerce ministry. Export growth moderated due to petroleum product exports, which came down sharply by 16 per cent. Petroleum exports constitute a little over 20 per cent of India’s total export basket. The decline in imports was led by gold and silver, which dropped 68.8 per cent to $1.8billion in December 2013, on account of a series of restrictive measures taken by the government to tame gold import in an effort to control the current account deficit (CAD). In the previous month, import of gold and silver stood at $1.05 billion.

(Business Standard)