India's trade deficit widens to five-year high in June; exports up 17.57%

Major labour-intensive sectors showed signs of built up stress reducing and growth approaching

A sharp rise in crude oil bill led to India's trade deficit widening to a 61-month high in June, despite sustained growth in engineering and pharmaceutical products that boosted exports by 17.57 per cent.

The trade deficit increased to $16.61 billion, up from the $14.62 billion gap in May. This was primarily fuelled by a jump in crude oil imports, which rose more than 56 per cent to $12.72 billion in June, up from $11.5 billion a month back.

The overall imports rose at a five-month high pace of 21.31 per cent as compared to the 14.85 per cent rise