December trade deficit widens, pressure on current account

NEW DELHI Fri Jan 10, 2014 11:42am IST

A crow flies past a container ship docked at a port in Vallarpadam in Kochi December 11, 2013. REUTERS/Sivaram V/Files

A crow flies past a container ship docked at a port in Vallarpadam in Kochi December 11, 2013.

Credit: Reuters/Sivaram V/Files

Related Topics

NEW DELHI (Reuters) - India's trade deficit widened in December on slowing export growth which could pose pressure on the country's fragile current account balance.

But imports continued to fall, driven by curbs on gold, the country's second most expensive overseas purchase after oil.

The trade deficit stood at $10.14 billion compared with $9.22 billion in November, a trade ministry official said on Friday.

Merchandise exports rose 3.49 percent year-on-year to $26.35 billion, slowing down from a 5.86 percent pace in November.

Imports fell 15.25 percent year-on-year to $36.49 billion led by a 68.83 percent year on year drop in gold and silver imports.

India's Finance Minister P. Chidambaram has said he expects a current account deficit of less than $50 billion, compared with earlier estimates of $70 billion in the fiscal year ending March.

The shortfall was a record $87.8 billion in the previous 12-month period which had precipitated a record fall in the value of the rupee against the dollar last summer.

(Reporting by Manoj Kumar; Editing by Sanjeev Miglani)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Popularity Poll

REUTERS SHOWCASE

Record Highs

Record Highs

Nifty touches record high; software stocks gain.  Full Article 

New Adviser

New Adviser

Arvind Subramanian likely to be chief econ adviser.  Full Article 

Pricing Mechanism

Pricing Mechanism

Govt sets up a four-member panel to re-examine gas pricing.  Full Article 

Royalty Rates

Royalty Rates

India to hike iron ore royalty, miners may struggle to pass on extra cost.  Full Article 

Diesel Deregulation

Diesel Deregulation

Oil ministry to seek Cabinet nod on diesel deregulation - sources  Full Article 

Commodities

Commodities

Gold near two-month low; set for weekly drop on interest rate fears  Full Article 

Reuters Exclusive

Reuters Exclusive

Apple iPhone 6 screen snag leaves supply chain scrambling   Full Article 

Helping Regional Mills

Helping Regional Mills

Govt raises sugar import duty to 25 pct from 15 pct.  Full Article 

Curbing Risks

Curbing Risks

RBI to lower ceiling on bank loans to a single corporate group.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage