Trade Gap Widens To $5.26 Bn

The trade deficit of the country touched $5.26 billion during the first 11 months of 1996-97, aided largely by a 37.4 per cent growth in import of petroleum products.

Oil imports during the period rose to $8.76 billion in value terms. The figure was $6.38 billion in value terms during the corresponding period of 1995-96, when oil imports grew 24 per cent.

The rise in trade deficit has been attributed to a slow-down in export growth in the country which declined to 5.6 per cent during the first eleven months of 1996-97, against a rise of 21.4 per cent during the corresponding period of the previous year.

 

However, imports of non-POL (petroleum, oil and lubricants) grew marginally by 0.6 per cent during the period under review, against a 31.2 per cent growth during the comparable period of the earlier financial year.

The trade deficit had stood at $4.3 billion during April-February 1995-96, against a high of $4.89 billion during the corresponding period of the previous year.

The monthly economic report of the finance ministry also states that the foreign exchange reserves in the country rose to $22.37 billion as on March 31, 1997.