India's exports rise 6.7% to $25 bn in Dec; trade deficit widens to $12.7 bn

Posted By: Religare
Subscribe to GoodReturns

Exports rise 6.7% to $25 bn in Dec
Exports of Asia's third largest economy grew by 6.7 per cent during the month of December 2011 to USD 25 billion, even as global economic conditions remained weak during the period.

However, the picture of India's deficit position remained gloomy as imports during the month rose 19.81 per cent to USD 37.75 billion, thus shooting up the trade deficit to USD 12.7 billion for the December 2011 month.

While, for April-December 2011 period, exports rose by 25.84 per cent to USD 217.6 billion owing to better exports during the last months of the period. However, for the said nine months, trade deficit rose to USD 133.27 billion as compared to USD 96.21 billion during the same period a year ago.

India continues to struggle with ballooning trade deficit as it is also putting pressure on Indian rupee which continues to depreciate against dollar.

Indian currency depreciated around 16 per cent during 2011 and concluded the year with the worst performing currency in Asia.

Trade deficit has been partly shooting up due to rise in oil import bills which account for major proportion of India's import bills.

Also exports remained sluggish during the period, even as most of the advanced economies resorted to cut in expenditures to contain their mounting debt.

Read more about: economy, dollar, debt, exports, imports
Story first published: Wednesday, February 1, 2012, 23:31 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'