NEW DELHI: India’s trade deficit widened to a record $37.9 billion in Nov as imports hit an all-time high of almost $70 billion on soaring gold imports, while exports fell as a decline in petroleum shipments wiped out the gains from non-oil exports.
In Nov, gold shipments into the country soared over four times to $14.9 billion, compared to $3.5 billion a year ago, making it the second largest item in India’s import basket after petroleum with a 21% share of all imports. What added to the pressure was an 87% jump in vegetable oil imports, which were estimated at $1.9 billion.
While oil imports were up 8%, the export of petrol and diesel crashed by half to $3.7 billion. Similarly, gems & jewellery exports were down 25% to $2.1 billion. Overall exports fell almost 5% to $32 billion.
Govt is, however, drawing comfort from an 8% increase in non-oil exports to $28.5 billion. “Non-oil exports are growing in a comfortable manner. Huge fluctuation in petroleum prices is affecting exports,” said commerce secretary Sunil Barthwal.
Despite the fall in merchandise exports, the outlook for non-petroleum exports and services remains positive for the next four months, with overall exports seen at over $800 billion during the current fiscal year, he said.
Barthwal and his colleagues attributed the surge in gold imports to a steep rise in global prices and its safe haven status at a time when stocks remain volatile. L Satya Srinivas, additional secretary in commerce department, said that in the past too gold imports had seen a surge in a few particular months. Although the officers were silent on the issue, a part of the increase may also be attributed to lower customs duty, resulting in more yellow metal coming through legal channels instead of being smuggled.
