economy

Trade deficit records new high at US $185 billion

Although India had earlier announced that it had surpassed the export target of $300 billion for 2011-12, the rising trade deficit, touching $184.9 billion mark, was a worrying factor for India. The Indian government had set a target of $150 billion trade deficit.

=>Exports:

Exports soared up by 21% to $303.7 billion in 2011-12 as a result of strong growth in petroleum, pharmaceuticals and engineering products. India managed to go past the export target by adopting product and marketdiversification strategy.

=>Imports:

Indian Imports however, surged by 32.1% to $488.6 billion, leaving the highest-ever trade deficit of $184.9 billion.
Trade Deficit = Imports – Exports = $ (488.6 – 303.7) bn = $ 184.9 bn

Commerce Secretary Rahul Khullar held that owing to the huge trade deficit, the Current Account Deficit (CAD) is probable to be approximately an uneasy 4% of GDP in 2011-12.

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