India's trade deficit up at $21.7 billion in April-May
18 Jun 2010
India exported goods and services worth around $33 billion in the first two months of the current financial year (April-May 2010) while imports into the country during the two months stood at $54.7 billion.
The trade deficit of the country for the two months stood at a whopping $21.7 billion.
Exports from the country rose at an annual 35 per cent to $16.1 billion in May, while imports grew 43 per cent year-on-year to $27.4 billion for the month, widening the trade deficit for the month to $11.3 billion, trade secretary Rahul Khullar said on Friday.
April exports, backed by better performance of the gems and textiles sectors, rose 36 per cent to $16.9 billion, while imports rose 43 per cent from a year earlier to $27.3 billion. The trade gap for the month stood at $10.4 billion.
The high growth rate in total trade is attributed to the low base of the previous year - both for exports and imports.
India is targeting a 15 per cent rise in the country's exports in the current financial year. But, with imports outstripping imports by a big margin, the country is expected to end the current fiscal with a trade deficit of over $130 billion.
India, Asia's third-largest economy, had reported a 4.7 per cent fall in its exports in the 2009-10 fiscal amidst the global slowdown.