India trade gap at highest-ever $185 bn
Exports touched USD 303.7 billion for the previous fiscal registering 21 per cent expansion. However, exports fell in March by seven per cent to USD 28.7 billion.
Imports for the month aggregated USD 42.6 billion leaving a trade gap of USD 13.9 billion, according to data released by Commerce Secretary Rahul Khullar today.
The situation on widening trade deficit can go worse in the current fiscal, Khullar said adding exports would need to grow 28 per cent to maintain even the present position.
"If balance of trade (BoT) is to stay exactly where it was, my exports need to grow by 28 per cent and that is impossible,we cannot do that...where are we going to drum up 25-30 per cent growth,"? he asked. While there are signs of recovery in the US, Europe is not doing well.
The highest ever BoT remains an area of concern for the Reserve Bank as well. "The financing of the current account deficit will continue to pose a major challenge," RBI said in its credit policy review on April 17.
Going forward, Khullar, however,was pinning hopes on "tempered" demand for oil and gold in the wake of rising prices. Prices of these two commodities are not expected to rise in the current yeas
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