Reuters logo
December trade deficit widens, pressure on current account
January 10, 2014 / 6:14 AM / in 4 years

December trade deficit widens, pressure on current account

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.

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

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

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below