India''s trade deficit widens despite upward revision of export figures

Mumbai: India''s trade deficit widened 40.5 per cent in the fiscal year ended March 31, this year to $56.74 billion despite an upward revision in export data for the April-February 2006-07 period.

While announcing the March 2007 foreign trade data, the commerce ministry has announced an upward revision of export data for April-February 2006-07 by about $3 billion.

Data released by the government showed that for March this year the trade deficit fell to $3.8 billion from $4.66 billion in February as import growth slowed.

Robust expansion in Asia''s fourth-largest economy has seen the deficit grow over the past few months. It stood at $5.78 billion in January, $5.68 billion in December 2006, and $6.20 billion in November.

Without this revision, India''s merchandise exports during the 2006-07 would have fallen short by another $125 billion.

Exports in March grew 8.84 per cent to $12.58 billion compared with $11.56 billion in the same month a year ago as the impact of a rising rupee hit exporters. Imports during the month rose 14.45 per cent to $16.38 billion compared with $14.31 billion in March 2006.

Exports for the full year stood at $124.63 billion, up 21 per cent compared with $103.06 billion in 2005-06, while imports rose 26.45 per cent to $181.37 billion compared with $143.43 billion in the year-ago period.

Oil imports in 2006-07 stood at $57.27 billion, up 30.3 per cent compared with $43.95 billion in 2005-06. India imports more than 70 per cent of its oil needs and robust industrial growth has raised demands for fuel.

India is aiming at 28 per cent growth in exports at $160 billion for the fiscal year to March 2008, trade minister Kamal Nath has said.

India has also set a target of $200 billion in exports for the fiscal year that ends in March 2009.