India's May trade deficit rises to $20.14 billion

Business

oi-Sunil

By Sunil Fernandes

Published: Monday, June 17, 2013, 12:25 [IST]

India's trade deficit for the month of May rose to $20.14 billion, as imports increased while exports growth remained flat. The trade deficit for May was placed at $17.8 billion.

Imports for the month of May were placed at $44.65 billion as against $41.95 billion in the previous month. Exports on the other hand were almost flat at $24.51 billion, as compared to $24.16 billion.

India's rising trade and deficit have been a cause for worry for the government. The rising trade deficit has pushed the current account deficit, which has seen a pressure on the rupee.

The government in order to reduce the trade deficit has been taking steps to reduce gold imports. It has already hiked the gold import duty in the past. However, bulk of the imports are of crude oil, over which the government can exercise little control.

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