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Trade deficit drops to 15-month low of $10.3 bn in June

In June 2011, the trade gap stood at $14.42 billion

Press Trust of India  |  New Delhi 

Sharp compression in and declining has narrowed the country's to 15-month low of $10.3 billion in

In 2011, the trade gap stood at $14.42 billion

While in contracted by 5.45% to $25.07 billion, declined by 13.46% to $35.37 billion.

Commerce Secretary S R Rao expressed relief over narrowing and said that the gap would be under control.

"certainly has come down. We expect it to be under control," he said adding "some amount of current account deficit and is good for the economy".

"For any growing economy, so long it is in manageable limits, it does not cross double digits, it is in fact a very good economic indicator. Having trade surplus or surplus current account in my limited perception is not good for a growing economy," Rao said.

Director General of Foreign Trade (DGFT) Anup Pujari said that India's is expected to narrow in the current fiscal year from the previous year.

The country's has touched an all time high of $184.9 billion in 2011-12.
"... Certainly $185 billion will not be there because this time is falling," Pujari said.

Global financial service provider Nomura said that while lower oil prices are partly responsible for the drop in the oil import bill, rupee depreciation is starting to narrow the non-oil import bill.

The rupee has touched a record low of about Rs 57 against the US dollar in mid-
"Gold are also down as a result. As the lagged effect of rupee depreciation plays out, we expect the current account deficit to narrow further to around 3% of GDP in FY'13 from a record high of 4.2% in FY'12," it said in a statement.

Crude oil during April-2012 stood at $41.5 billion.

Commenting on the figures, President of Federation of Indian Export Organisations (FIEO) M Rafeeque Ahmed said that the reduction in would help to manage the which can be kept below $150 billion during 2012-13.

First Published: Fri, July 13 2012. 18:32 IST