Trade deficit touches 18-month high as gold imports surge near six-fold

EXPERTS BELIEVE THAT THE HIGH DEFICIT WAS MAINLY DUE TO GLOBAL FACTORS AND DECLINING PETROL EXPORTS

NEW DELHI: A surge in gold imports pushed India’s trade deficit to an eighteen month high of $14.2 billion (₹87,202 crore).

Meanwhile, exports grew by 2.73% to $28.9 billion in September with imports jumping by about 26% to $43.15 billion. This the highest increase in imports in about last threeand-a-half-years,

Gold imports in September increased almost six-fold to $3.75 billion compared to $682.5 million in same month last year.

“Export (growth) is disappointing. It is primarily due to global factors. WTO has downwardly revised global trade forecast for 2014 to 3.1% as against 4.7% predicted earlier. Moreover, softening of crude prices, which is good for Indian economy, has also contributed to decline in petroleum exports,” said Rafeeq Ahmed, president, FIEO.

Trade deficit in September, 2013, was $6.12 billion. Earlier, the deficit had touched a high of $20.1 billion in May 2013. Similarly, the previous highest import growth was in November 2011 at 29.1%.

Trade deficit in September, 2013, was $6.12 billion. Earlier, the deficit had touched a high of $20.1 billion in May 2013. Similarly, the previous highest import growth was in November 2011 at 29.1%. Oil and non-oil imports grew by 9.7% and 36.2% in September to $14.49 billion and $28.6 billion respectively.

During the April-september quarter, exports grew 6.47% to $163.7 billion while imports grew by 1.57% to $234 billion, leaving a trade deficit of $70.39 billion in the first half of the current fiscal.