India’s exports accelerate as oil imports rebound

NEW DELHI – India’s August external trade deficit of US$10.9 billion was above expectations and an improvement on the July figure of US$12.3 billion. After averaging a deficit of US$15.5 billion for the first six months, two months of markedly lower deficits are likely to please the RBI and the Government, and possibly the markets, given recent efforts to address current account strains, says ANZ Bank.

“Export growth may well continue through FY2013-14, boosted by rising external demand and a significantly more competitive currency,” ANZ says. “We expect imports to begin expanding again from September.” It adds: “Should the reacceleration in export growth be sustained and import growth contained, the Government’s Current Account Deficit (CAD) target of -3.7% of GDP in FY2013-14 is beginning to look more achievable. www.live.anz.com (ATI).