Exports jumped 36.2% in April on the back of a rising demand in gems & jewellery, engineering and petroleum products. Releasing the export data on Wednesday commerce secretary Rahul Khullar said that though the exports were on a growth trajectory, the Greek crisis and the subsequent debt crisis could create some hurdles for India?s exporters in the months ahead.

Total merchandise exports for April stood at $ 16.9 billion against $ 12.4 billion in April last year. Khullar said, ?Do not get carried away by the 36.2% export growth?the base effect is still playing a part in it. The recovery looks very exaggerated,? Khullar said. He added that compared to April 2008 when exports were around $ 18.5 billion, the growth this year has been moderate.

Imports in April increased 43% to $ 27.3 billion buoyed by a turnaround in the domestic sector due to rising demand. Khullar said that major import items? demand had gone up significantly showing that the domestic industrial revival had started. For instance fuel imports increased 70% to $ 8 billion, gems & jewellery imports jumped a whopping 118% to $ 2 billion and iron & steel imports increased 147% to $ 1.2 billion. Khullar said that the rising imports were a positive sign for India as most of the imported items were used for exports, like gems & jewellery and petroleum products.

With imports outpaced exports in April, the trade deficit for the month increased to $ 10.4 billion from $ 6.7 billion a year back. Khullar said that as long as trade balance did not touch $ 10 billion per month it would not cause any concern to the government. ?It is just the first of the month. Let us see how it pans out in the year,? he added.

Voicing concerns over the unpredictability of the Greek crisis and its impact on India, he said that India?s exports to countries like Greece and Iceland form a very small part in the overall export basket.

President of Federation of Indian Export Organisation A Sakhtivel said that the April numbers is another sign of India?s recovery from the downturn. However he added that the wakening euro was a big setback for Indian exporters.

Meanwhile, in a bid to reach a consensus with EU on the long pending issue of drug seizure, India would be hosting a meeting with David O?Sullivan, director general of trade for EU next week. ?I would be meeting him next week for a round of consultation,? Khullar said.