India's April exports jump; growth seen slowing

By Surojit Gupta

NEW DELHI (Reuters) - India's exports grew a robust 31.5 percent in April from a year earlier to $14.40 billion, while higher imports of costly oil dragged the trade deficit out to $9.87 billion, official data showed on Monday.

Figures released by the Commerce and Industry Ministry showed imports rose by 36.6 percent to $24.2 billion, compared with $17.8 billion in the same month a year ago.

Oil imports in April stood at $8.03 billion, 46.2 percent higher than in the same month of 2007.

India imports 70 percent of its oil needs, and the surge in the cost of oil imports widened the trade deficit in April by 30.96 percent from the year-ago month.

"The deficit is on expected lines due to higher oil prices and is likely to remain high, but I don't see any crisis," said Saumitra Chaudhuri, economic adviser at domestic credit rating agency ICRA.

But other analysts expect exports to come under pressure in the months ahead.

"With a global slowdown, you should not expect exports to grow at a rapid pace. They will definitely face headwinds," said Biswajit Dhar, a trade expert at the Indian Institute of Foreign Trade.

The World Trade Organisation said last month global trade growth would slow to a six-year low in 2008 although financial market turbulence and slowdowns in some developed economies have so far had little effect.