BoP strong despite high trade deficit

New Delhi, Feb 25 | Updated: Feb 26 2005, 05:56am hrs
Record trade deficit in the first 10 months of 2004-05 and sustained surge in imports on account of a buoyant domestic economy is likely to produce a current account deficit in the fiscal after three consecutive years of surplus.

Trade deficit, which stood at $14.3 billion in 2003-04, has increased by 68% to touch $22.7 billion in April-January 2004-05. While exports in the period was an impressive $60 billion, imports were much higher at $83.4 billion. According to the Survey, despite the high trade deficit, the outlook for balance of payments (BoP) appears reasonably strong and resilient.