By IANS,
New Delhi : India’s trade deficit widened to $12.93 billion in July as exports fell short of target due to lower demand of leather, handicrafts and readymade garments in the US and Europe.
Exports grew only by 13.2 percent in July 2010 year-on-year against 30.4 percent growth recorded in the previous month. Exports from the country in July were $16.24 billion while import was $29.17 billion resulting in a trade deficit of $12.93 billion.
“Trade deficit is much larger than it used to be before. Exports grew only 13.2 percent. This is not a good number,” Commerce Secretary Rahul Khullar said Tuesday.
Exports slowed in July because of a sharp drop in the exports of leather, handicrafts, readymade garments, tobacco and rice.
Imports grew by 34.3 percent to $29.17 billion in July as imports of coal and fertilizers almost doubled.
Interestingly, imports of crude oil grew by only four percent during the April to July period this year.
In the first four months of this year, exports increased 30.1 percent to $68.6 billion, while imports surged 33.3 percent to $112.2 billion, resulting in a trade deficit of $43.6 billion.
The government has set an export target of $200 billion in the current fiscal. The July data indicates that the target will be difficult to achieve.
However, Khullar said the government was optimistic and the $200 billion target would be achieved if exports grow by at least 15 percent for the rest of the year.