India's trade deficit widens to $13.35 bn

India's trade deficit in October increased by 26.06 percent at $13.35 billion, from $10.59 billion in the corresponding month of last year, government data showed Monday.

However, on a month-on-month basis, the deficit declined by 6.31 percent at $13.35 billion, from $14.25 billion in September 2014.

"The trade deficit for April-October 2014-15 was estimated at $83.756 billion, which was lower than the deficit of $87.319 billion during April-October 2013-14," the commerce and industry ministry said in a statement.

According to data released by the Reserve Bank of India (RBI), exports during the month under review were lower by 5.04 percent at $26.09 billion than the level of $27.48 billion during October 2013.

India Inc expressed its disappointment over the exports figure for the month under review

"Surprisingly, all our performing sectors, which were expected to bring a turnaround either exhibited negative or miniscule growth. While engineering, drugs and pharmaceuticals, gems and jewellery, cotton and carpets entered into the negative territory, growth has moderated in leather, apparels and marine sector," said M. Rafeeque Ahmed, president, Federation of Indian Export Organisations (FIEO).

"This is an alarming situation. The government should immediately re-introduce interest subvention on exports."

For the period of April-October 2014-15, exports grew by 4.72 percent at $189.79 billion from $181.23 billion.

Imports at $39.45 billion grew by 3.62 percent in the month under review, from $38.07 billion imported in the corresponding month of last year.

The cumulative value of imports for the period April-October rose by 1.86 percent at $273.55 billion from $268.55 billion in the corresponding period of last fiscal.

Oil imports during October 2014 were valued at $12.36 billion, which was 19.2 percent lower than oil imports in the corresponding period last year at $15.29 billion. This was primarily a result of softening of international crude prices that were ranging between $80-$90 a barrel mark since August and the rupee appreciation against the US Dollar.

Oil imports during April-October 2014-15 were down 0.5 percent at $94.84 billion lower than $95.30 billion in the corresponding period last year.

The non-oil imports during the month under review were higher by 18.9 percent at $27.08 billion from $22.78 billion in October 2013.

Non-oil imports during April-October 2014-15 were up 3.2 percent at $178.70 billion from $173.24 billion in the corresponding period last year.