Exports during October 2012 were at $23.24 billion, a decline of 1.63% when compared to October 2011, according to figures released by the commerce department.

Imports during the month were at $44.20 billion posting an increase of 7.37% over imports in the same month of the previous year increasing the trade deficit to $20.96 billion during the month.

Dwindling exports and rising imports are a cause for concern, as it could put pressure on the current account deficit and hence the rupee.

There are reports that the government maybe forced to increase duties on gold, to curb its imports and hence reduce the trade deficit.

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