NEW DELHI, June 19: India’s exports surged by 29.6pc in May from the same month a year earlier to $9.36bn but the trade deficit swelled on rising oil import costs, the trade ministry said on Monday.

The deficit for May, the second month of the fiscal year, rose almost 6.1pc from May 2005 to $3.84bn.

Imports rose 21.7pc to $13.19bn with oil imports accounting for $4.15bn, an increase of 27.3pc from the same month a year earlier.

India imports about 70pc of its energy needs.

In April exports stood at $8.35bn while imports were valued at $12.56bn for a trade deficit of $4.21bn.

The trade ministry has forecast a 20pc rise in exports for the current fiscal year ending March 2007 to $120bn as the country earns more from services such as outsourcing and manufacturing.

For the year ended March 2006 annual exports jumped 25pc to cross the $100bn mark.—AFP