Trade deficit shoots up 31.5% to $7.5 bn

Merchandise exports from India shrunk one per cent in December, 2008 and stood at $12.7 billion, compared to $12.82 billion in the same month last year. Imports during the month increased by 9 per cent to $20.25 billion from $18.61 billion in the year ago month, data released by Commerce Ministry showed today. With Imports outpacing exports, trade deficit in December stood at $7.5 billion, a rise of 31.5 per cent compared to $5.7 billion in the same month of 2007. This is the third consecutive month in which exports have dipped due to waning demand from overseas buyers in the backdrop of the ongoing global economic crisis, especially in United States and European Union. Oil imports in the month under consideration dipped 31 per cent to $4.71 billion from $6.82 billion in the year ago month. Non oil imports during the month increased 32 per cent to $15.5 billion from $11.78 billion in December, 2007. In the April to December period of 2008, exports from the country increased by 17.1 per cent to $132 billion from $112.7 billion in the corresponding period of 2007. Imports in the April to December period of 2008 stood at $225.8 billion, a rise of 31.5 per cent over $171.7 billion in the same period of 2007.