India’s trade data for April 2014 shows a continuing low trade deficit. With Exports at $25.6 billion (+5.3%) and imports at $35.7 billion (-15%) the trade deficit is just $10 billion.
Export and imports seem to now be going the right direction after creating a scare last month (when imports picked up but export growth fell).
The problem of course is that total trade itself is declining:
This can be explained with the fall in gold imports due to restrictions introduced after June last year. Last April saw record gold imports when gold prices fell ; India imported $7.5 billion of gold and silver in April 2013 alone! (Interestingly, in that post, I was long gold. I now am no longer long the shiny metal.)
However the fact remains that our total trade has been more or less stagnant (in dollar terms) since 2012.