India's August trade deficit hits a 23-month high of $13.06 billion

India's trade deficit hit a 23-month high of $13.06 billion in August 2010, pushing the country's estimated full-year (April-March 2010-11) trade deficit to around $135 billion, far above the $120 billion deficit forecast in August.

The August figure is the highest monthly trade deficit registered since September 2008, when it touched $15.35 billion.

India's imports in August rose 32.6 per cent to $29.7 billion while exports from the country during the month grew 22.5 per cent to $16.64 billion, commerce secretary Rahul Khullar said today.

Khuller said $135 billion is "much higher than we ever had before," adding, "It is therefore naturally a matter of concern."

However, he did not see the trade deficit as a serious problem still. "It still can be financed," he said.

Talking to the media, Khullar said exports from some sectors like cotton yarn, iron ore, gems and jewellery, plastics and linoleum, leather engineering etc, however, have been doing well.