NEW DELHI, June 14 Reuters India39;s merchandise exports rose 9.1 to 38.13 billion in May from a year earlier, helped by an increase in shipments of engineering goods, commercial vehicles and smartphones, government data showed on Friday.

Merchandise imports in the same month rose 7.7 yearonyear to 61.91 billion widening the trade deficit to 23.78 billion. Economists had expected a deficit of 19.5 billion, according to a Reuters poll.

In April, trade deficit was of 19.1 billion.

Analysts say merchandise exports which contracted 3.1 to 437 billion in the previous fiscal year are likely to pick up helped by a projected rebound in global trade, government incentives for manufacturing and easing domestic inflation.

Inflation has eased in developed economies, potentially leading to better demand, and a rise in imports from India, trade secretary Sunil Bharthwal said while releasing the figures.

This will be a positive trend for Indian exports this fiscal year, he said, noting exports of goods were helped by increased shipments to the United States.

Services exports in May were estimated at 30.16 billion and imports at 17.28 billion, compared with 30.33 billion and 16.63 billion respectively in April.

Asia39;s thirdlargest economy grew at a fasterthanexpected pace of 7.8 in the JanuaryMarch quarter, helped by a strong performance in the manufacturing sector. Economists expect the momentum to continue this year.

Reporting by Shivangi Acharya and Manoj Kumar; Editing…