labels: economy - general
India''s trade deficit widens to $7.3 billion in June news
01 August 2007

Mumbai: India''s trade deficit widened to $7.33 billion in June as imports surged 36.7 per cent to $19.2 billion, while exports rose by a slower 14 per cent from a year earlier to $11.87 billion, official data showed.

The country''s trade deficit stood at $20.61 billion in the first quarter of the fiscal year (April-June 2007-08), wider than $11.84 billion in the year-ago period. It was $3.64 billion in June a year ago.

During April-June, exports rose by 18.11 per cent to $34.3 billion as the rupee gained about 6.75 per cent against the dollar and squeezed the margins of exporters.
Imports however rose by 34.3 percent to USD 54.91 billion during April-June period.

The government last month announced a $320 million relief package for exporters hit by currency appreciation, including increased duty draw-back rates and lower bank lending rates.

The commerce ministry has set an export target of $160 billion for the year to March 2008.

Analysts expect the growing demand for imports, including oil, in India''s fast-growing economy could lead it higher in the months ahead.

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India''s trade deficit widens to $7.3 billion in June