India’s merchandise exports rose by 21.3 per cent to USD 18 billion in October over the year- ago period, boosting hopes that the country may be able to reach the USD 200 billion target fixed for the current fiscal.

Imports during the period grew by 6.8 per cent to USD 27.68 billion, leaving a trade deficit of USD 9.72 billion, according to a Commerce Ministry data released in New Delhi on Wednesday.

The rate of expansion in exports has outpaced imports growth for the first time in last 3-4 years.

Exports in October last year were valued at USD 14.8 billion while imports were worth 25.9 billion.

The growth in overseas shipments is attributed to improved demand in the US and EU, besides increase in exports to African and Latin American countries.

The country is likely to end the year with import-export gap of about USD 125 billion, said a Commerce Ministry official recently.

For the first seven months (April-October) too, exports rose at a faster pace of 26.8 per cent at USD 121.3 billion against 26 per cent growth in imports at USD 194.1 billion.

All the big ticket items like engineering goods, gems and jewellery, chemicals and petroleum products have registered positive growth in the first seven months of the fiscal, the official said.

However, exports of tea, tobacco, cashew and handicraft declined.

In imports, oil imports and non-oil imports during the month under review grew by 0.3 per cent to USD 8.41 billion and 9.9 per cent to USD 19.27 billion, respectively, according to the data.

During April-August 2010-11, oil and non-oil imports grew by 24.6 per cent to USD 57.12 billion and 26.7 per cent to USD 137.04 billion, respectively.

Continuous upward trend witnessed in exports has made the government officials optimistic of meeting the USD 200 billion export target this fiscal.

The target was announced in the Foreign Trade Policy in August last year.