Exports grew 26% to $28.6 billion during September, showing its fastest pace of expansion in six months. With imports rising at a slower pace, the trade deficit narrowed to its lowest level in seven months.
What helped reduce the trade deficit or gap between exports and imports was a 5% fall in gold imports to $1.7 billion during September, latest data released by the commerce department showed. It estimated that imports grew 18% to $37.6 billion with a surge in oil, coal and machinery and equipment that run factories and power plants, as well as pearls and precious and semiprecious stones which are re-exported with value addition.
In addition, a sharp increase in the import of electronic goods pointed to high consumer demand for phones and other gadgets. More than import, it is export that will bring cheer to companies as well as policymakers as it is seen as an engine to revive economic activity that has remained sluggish due to weak domestic demand.