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Exports fell 1.1% to $24.5 billion in May this year compared to $24.7 billion in the same month last year, official data showed today.
Imports, on the other hand, rose 6.9% to $44.64 billion against $41.7 billion over the period.
Despite government raising import duty on gold to 8% from 6%, import of yellow metal almost doubled to $8.4 billion in May from $4.4 billion.
Commerce secretary SR Rao attributed contraction in overall exports and rise in gold imports to recent move to ban gold trading in SEZs.
As such, trade deficit widened to $20.1 billion compared to $18.9 billion over the period. For the first two months of the current finaancial year, trade deficit rose to $37.9 billion compared to $30.97 billion.
This may further widen current account deficit which has already reached 6.7% in the third quarter of 2012-13.
