Trade deficit up despite growth in exports

The country's trade deficit increased marginally to $3.83 billion during May from $3.62 billion in the same period last year, despite close to 30 per cent growth in merchandise exports to $9.35 billion.

According to the provisional trade data released by the commerce ministry today, the country's imports during May increased by around 22 per cent to $13.19 billion compared with $10.84 billion in May 2005.

Commerce and Industry Minister Kamal Nath said the continued double digit 20 per cent-plus growth in the country's merchandise exports for the third year in succession reflected, among other things, the growing global competitiveness of the Indian manufacturing sector, an official release said.

Oil imports during May was valued at $4.15 billion which is 27 per cent higher than the oil imports valued at $ 3.26 billion in the corresponding period last year.

During April-May, oil imports were valued at $8.34 billion which is 31 per cent higher than the oil imports valued at $7.58 million in May 2005. Non-oil imports during the two-month period was estimated at $17.44 billion which is 19 per cent higher than the level of such imports valued at $14.65 billion in April-May 2005.

Exports during April-May 2006 was valued at $17.70 billion (provisional), which is 28.40 per cent higher than the level of $13.78 billion (provisional) during April-May 2005.

The final reconciled figures by the Directorate General of Commercial Intelligence and Statistics (DGCIS) for April-May 2005-06 are $15.71 billion for exports and $22.97 billion for imports, with a trade deficit of $7.26 billion.