India's April trade deficit likely to have narrowed

India will release April trade data during the week of 11 May. The trade deficit is likely to have narrowed to USD 9.5bn from USD 11.8bn in March. 

"Exports likely contracted again (declining 20% y/y, versus 21% in March) on weaker activity in trading-partner nations, while slower imports likely helped narrow the trade deficit. Gold imports probably eased as pent-up and festival-related demand slowed. The spike in oil imports in March likely eased in 
April. Market concern about the external sector is expected to rise following yet another double-digit trade deficit", according to Standard Chartered.

Nevertheless, the current account (C/A) deficit will remain contained in FY16 (year ending March 2016) as commodity prices remain benign and domestic investment takes time to pick up.