India managed to reduce its trade deficit despite continued decline in exports in June this year, thanks to a sharp decline in imports of gold.

Exports slipped 4.56 per cent to $23.78 billion in June 2013, as against $24.92 billion in the same month of the previous year. Imports dropped 0.37 per cent year-on-year, from $36.16 billion to $36.03 billion. While non-oil imports slipped 6.7 per cent year-on-year to June 2013, oil imports jumped 13.74 per cent, from $11.22-billion in June 2012 to $12.76 billion June this year.

The country's trade deficit narrowed to US$12.24 billion in the month under review. In May and April, trade deficit was at $20.14 billion and $17.79 billion respectively.

Gold and silver imports slipped to $2.45 billion in June 2013 from $8.4 billion in May and $7.5 billion in April, thanks to increase in duties on the imports of these precious metals.

Speaking on the topic, Director General of Foreign Trade Anup Pujari said, "The decline in trade deficit is also due to slowdown in import of gold. It is possible to attribute this to measures on gold taken by the Government, particularly the RBI."

Pujari, however, cautioned that global prospects remained uncertain. Nevertheless, the decline in trade deficit has come as a big relief for the Government, which has long been struggling to high deficit levels.