India's trade deficit is well on way to hit the $200-billion mark in the current financial year ending 31 March 2013, with the negative balance of trade already up above $167 crore as of end-January 2013 and bouncing by $20 billion every month.
The country's trade deficit shot up to $167.17 billion during the first 10 months of the financial year (April-January 2012-13), up from $147.17 billion at the end of December 2012, as January imports added $20 billion to the country's already heavy current account deficit.
India imported goods and services worth $45.58 billion (Rs2,47,593.63 crore) during January 2013, which was up 6.12 per cent in dollar terms and 12.28 per cent higher in rupee terms compared to imports valued at $42.95 billion (Rs2,20,514.54 crore) in January 2012.
Exports during January 2013 were valued at $25.59 billion (Rs138,981.70 crore), which was 0.82 per cent higher in dollar terms and 6.67 per cent higher in rupee terms compared to exports worth $25.38 billion (Rs130,294.02 crore) during January 2012.
Cumulative value of imports for the April-January 2012-13 period stood at $406.86 billion (Rs22,15,115.46 crore) against $406.82 billion (Rs19,34,946.96 crore) posting a negligible growth of 0.01 per cent in dollar terms and a 14.48 per cent growth in rupee terms over the same period last year.
Cumulative exports for the April-January 2012 -13 period stood at $239.69 billion (Rs13,05,420.39 crore) against $251.93 billion (Rs1196,962.33 crore) registering a negative growth of 4.86 per cent in dollar terms and growth of 9.06 per cent.
Obviously, the continuing fall of the rupee has had a negative effect on import earnings while it did not help boost exports either.