At nearly $38bn, trade deficit hits record high

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.