India’s trade deficit increased to US $ 10.56 Billion in October as purchases of gold picked up ahead of the festival season.
India’s Trade Ministry data showed the deficit grew from $6.7 Billion in September, a two-and-a-half-year low, but rose weighed down by higher value of gold imports to $1.37 Billion in October, compared with $800 Million in the previous month. However, imports in total fell 14.5% year-on-year to $37.83 Billion.
India celebrates a series of festivals like Durga Puja and Deepavali during the months of October and November which traditionally leads to higher demand for precious metals.
Ministry of Commerce Trade Secretary SR Rao said the government measures are bearing results and there is a positive trend in major sectors contributing to growth in exports and country was aiming at a target of $325 Billion.
Exports have been rising steadily since July mainly on account of rupee depreciation coupled with rise in demand in some of the main markets of US, Europe, as well as Africa and Southeast Asia.
Merchandise exports in October surged an impressive 13.47% to $27.27 Billion compared to $24.03 Billion in the same month last fiscal.
This was the fourth month in a row when exports registered a double-digit growth and highest in last two years. It was way back in October 2011 when exports registered higher growth rate of 23.7%. (