The ministry of commerce and industry, which announced a slew of measures to support the country's sagging exports a day before, is planning a second review of export policy in December this year.
Commerce and industry minister Anand Sharma said the ministry would conduct another review of the different sectors of the economy after assessing the impact of the trade policy changes announced on Monday.
The minister's announcement comes in the wake of the country's ballooning trade deficit, which is expected to top $120 million by the end of the current financial year, ie, 31 March 2011.
Trade secretary Rahul Khullar on Tuesday told reporters that he expected the country's trade deficit for the current fiscal to be of the order of at least $120 billion. The country reported a trade deficit of $12.93 billion in July.
"Look, any deficit of the order of $120 billion is serious, but as long as it does not go over the top it can be financed," Khullar said rising concern at the rising trade deficit.
Meanwhile, addressing a seminar on foreign trade policy organised by the FICCI, commerce minister Anand Sharma said he proposed another review of the country's trade policy by the end of the year, ie, 31 March 2011.