India’s export growth came in at a subdued 12.4% growth rate to $19.9 billion in October 2011 as compared to a year ago period, stung by lag effect of worsening euro zone crisis hitting Indian exports and shipments.

During September, Indian exports had registered a smart growth of 36.5% to arrive at $24.8 billion. The August month Indian exports stood at $24.3 billion.

header thumb India’s exports up 36% in Sept 2011, Trade deficit at $9.8 billion!

On the other hand, India’s imports for the month of October showed no signs of respite as it grew by 36.7% to $39.5 billion. In September, imports stood at $34.6 billion, paving way for a trade deficit of $9.8 billion for the month.

Thus, the October trade deficit of India came in at unrelenting $19.6 billion pushing it to a 4 year high. The total trade deficit for the first seven months of FY12 stood at record $93.7 billion, fuelling further inflationary concerns in the economy.

Moreover, reports indicate that India’s trade gap has increased primarily due to recession in the Europe as India’s merchandise shipments of engineering and petroleum products slumped due to weaker overseas demand for the refined products. Further, the pressure on trade deficit could only worsen as India’s higher oil imports and weaker rupee boosted the value of imports.

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