India's trade gap rises over 50 per cent to $185 billion in fiscal 2011-12

India's trade deficit rose to an estimated $185 billion during the financial year ended 31 March 2012 against $118.6 billion in the previous fiscal, an increase of more than 50 per cent year-on-year.

Buoyed by high crude import prices and rising demand for gold, India's imports during the last fiscal year ended 31 March 2012 rose to a provisional $485 billion. In fact, crude oil and petroleum products accounted for nearly a third of the value of the country's 2011-12 imports, minister of commerce, industry and textiles Anand Sharma said.

Crude oil and petroleum products account for $150 billion or more than a third of the country's annual import bill while gold and silver add another $60 billion to the import bill, Sharma pointed out.

On the other hand, merchandise exports from the country, grew at a slower pace and stood at $300 billion during the fiscal year ended 31 March 2012. The growth in exports was mainly on account of demand from new markets and strong performance by some sectors.

With the prices of crude oil and gold remaining high and non-oil imports also staying strong, Sharma said, the pressure on the trade balance will remain and it would be a big challenge to contain the country's trade deficit.

The decline in export growth was mainly due to a decline in demand for Indian goods and services in the key traditional markets of the West, especially the US and Europe.