India trade data offers current account relief A surge from exporters and a fall in gold imports helped India post its lowest trade deficit in more than two years during September, cutting pressure on the rupee and raising hopes that the central bank will further unwind emergency measures introduced to protect the currency. The trade deficit narrowed to $6.7bn during the month, down from $10.9bn during August and $17.15bn at the same period 12 months earlier, according to provisional government data on Wednesday. The fall, the latest in a series of positive monthly figures, saw exporters in Asia's third-largest economy respond to recent rupee depreciations by posting an 11 per cent increase to $27.68bn, the third successive month of double-digit export growth. The data are likely to ease concerns over India's elevated current account deficit, which provided the most significant underlying source of pressure on the rupee during July and August, against a backdrop of capital flight from major emerging markets. September also saw reductions in imports, down 11 per cent year-on-year to $28bn, the lowest level since early 2011 according to India's commerce ministry, and a reflection of continued weakness in domestic demand following the nation's recent growth slowdown. Gold and silver imports shrank sharply to just $800m, down from $4.6bn in September 2012, in a sign of the success of government measures designed to curb India's traditionally robust demand for the yellow metal. S R Rao, India's commerce secretary, said: "Major export sectors have shown a significant positive upward swing, and I am more than confident that we should be able to reach the [export] target of $325bn for this financial year which the government has set." The positive figures are likely to raise pressure on India's central bank governor Raghuram Rajan to bolster domestic growth by announcing further rollbacks of emergency monetary tightening measures introduced during July to bolster the rupee. Analysts also expect pressures on the country's current account deficit to ease in the second half of this fiscal year, while on Tuesday Mr Rajan said he expected the country to meet its target to reduce the deficit to 3.7 per cent of gross domestic product, or $73bn, during this financial year.