Trade deficit at record high on gold imports

Hits 38 bn in Nov; exports contract 4.8% to 25-month low

- SHREYA NANDI

India's trade deficit reached a record high of $37.8 billion in November, amid a surge in merchandise imports, mainly driven by a 4.3-time jump in inbound shipments of gold, data released by the commerce department showed. Imports increased by 27 per cent to a record of almost $70 billion during the month.

On the other hand, exports contracted 4.8 per cent to a 25-month low of $32.1 billion in November. The contraction came in a month after witnessing robust 17 per cent year-onyear (Y-o-Y) growth in October, which, according to government officials, was due to inventory-building by the West ahead of the Christmas season.

Commerce secretary Sunil Barthwal said that in November, decline in petroleum prices had largely affected exports, although on the brighter side, non-petroleum products grew nearly 8 per cent, an indication that demand is intact.

"This Christmas demand for exports is growing, which means that demand for (non-petroleum) Indian products is consistently rising," Barthwal told reporters in a briefing on Monday.