April trade deficit jumps on huge gold imports

Gold and silver imports up by 138% to $7.5 billion last month compared to a year earlier

India's April trade deficit leapt to $17.8 billion, a trade ministry official said, on a massive surge in imports of cheaper gold that will increase concerns about the current account deficit in Asia's third largest economy.

Gold and silver imports were up by 138% to $7.5 billion last month compared to $3.1 billion a year earlier, as retail consumers in the world's biggest gold importer went on a buying spree after global prices fell.

Overall, merchandise imports rose 10.9% to $41.95 billion, trade ministry officials said on Monday, driving the trade deficit up by more than 72% from March.

Exports rose 1.6% from a year earlier to $24.16 billion, up for the fourth straight month.

Commerce Secretary S R Rao attributed the widening of trade deficit in the first month of the current fiscal to high gold imports.