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India's merchandise exports expanded by more than 10% for the second month in a row in June, the latest sign that India's economy may be rebounding.
June exports rose 10.2% from the year-earlier month, to $26.48 billion, after climbing 12.4% in May and 5.3% in April, the trade ministry said on Wednesday.
Imports rose 8.3% to $38.24 billion, following an 11.4% decline in May.
The trade deficit stood at $11.76 billion in June, compared with $11.23 billion in May and $11.28 billion in June 2013.
"The whole gamut of data announced lately points to one thing, which is that an economic recovery is already under way and the pace will strengthen going forward," said Sujit Kumar, an economist at Union Bank of India. "What has mainly anchored India's exports is a recovery in India's main trading partner nations such as the U.S., some African and even South Asian economies." Data over the past week showed India's industrial output jumped to a 19-month high while consumer inflation dropped to its lowest level in more than two years.
Hopefully the new government will use the momentum from the recent elections to put in place the necessary economic reforms to ensure the long term viability of India's economy. I am investing in India via the Matthews India Fund (MINDX).