India’s exports for September 2011 grew by 36% YoY to $24.8 billion, while imports registered a surge by 17.2% to arrive at $34.6 billion; paving way for trade deficit of $9.8 billion for the last month of the July-Sept quarter.
In addition, even the exports for the second quarter of the fiscal witnessed improvement by 52.1% to $160 billion, despite deceleration in the major global economies. However, more concerning is the fact that imports have also remained robust against the backdrop of rising exports, which means there is not respite in trade deficit numbers.
India’s exports for the month of August came in at $24.3 billion, whereas imports pricked in at $38.4 billion; with a trade deficit of $14 billion during the given period. Crude oil import for August was valued at $10.3 billion, as against $7 billion in the corresponding month last fiscal.
Most of India’s trade deficit can be attributed to higher crude oil import, with country’s oil import bill comprising of more than quarter of the total imports.