Imports push trade deficit up to $3.85 bn

Despite a 17.2 per cent export growth during April, India's trade deficit nearly trebled to $ 3.85 billion from $1.29 billion in the corresponding period last year.

According to the provisional trade data released by the commerce and industry ministry today, exports rose to $ 6.56 billion during April 2005, compared to $ 5.60 billion in the corresponding period last year.

Imports rose 51 per cent to $ 10.42 billion, against $ 6.90 billion during April 2004.

The increase was not only on account of higher prices of crude petroleum, which were responsible for pushing up the oil import bill by 41.37 per cent to $ 3.29 billion during April this year, compared to $ 2.33 billion in April 2004.

Non-oil imports grew faster at 56 per cent to $ 7.12 billion this April.

A higher non-oil import bill could augur well for the Indian economy as it indicates enhanced economic activity.

The government has set an export target of $ 92 billion for the current fiscal against $ 80 billion during 2004-05. This translates into a 15 per cent export growth target.