India’s trade deficit hits record high
A Bombay Stock Exchange (BSE) employee holds a roll of firecrackers during celebrations outside the BSE headquarters in Mumbai on November 8, 2011. Brokers and BSE officials were celebrating the Derivatives trading crossing the 1,000 crore rupee ( 204 million USD) mark.
India's dreams of building a lucrative export-based economy will have to wait if the latest figures are any indication of what's to come in the near future.
According to the Times of India, the country's trade deficit hit a record high of nearly $20 billion in October as the economic woes in Europe hit exports and imports of fuel and petroleum products continued to climb.
According to preliminary data released by the commerce department on Tuesday, export growth moderated to 12.4% in October with the value of shipments out of the country estimated at $19.9 billion, the paper said.
Meanwhile, imports surged 36.7% to $39.5 billion due to a steep rise in oil, gold and coal imports. India's previous record high trade deficit for a month was $15.7 billion, set in August 2008 and again in May this year, the paper said.