New Delhi, Jun 11 (KNN) Thanks to recovery in the US Economy, India’s merchandise exports increased by 12.4 per cent in May over the same month of 2013, showing the sharpest rise in the past six months.

Exports during the month went up to USD 28 billion, while imports declined by 11.41 per cent to USD 39.23 billion, thanks to a sharp fall in gold imports.

Consequently, India’s trade deficit narrowed by 42 per cent to USD 11.23 billion, as per the data released by Commerce Secretary Rajeev Kher.

Kher told reporters that the Commerce Ministry is in talks with the Finance Ministry to bring down restrictions on gold import in the ensuing budget.

Reacting to the data, President of Federation of Indian Exports Organization (FIEO), Rafeeque Ahmed said that the export shipments may touch even USD 360 billion in the current fiscal.

The Chairman of the Engineering Export Promotion Council (EEPC India), Anupam Shah said that to retain and improve the growth, Indian exports must be made competitive and irritants like power shortages should go. (KNN Bureau)