India's trade deficit swells nearly three-fold

India’s trade deficit swells nearly three-fold

Despite a 17.2% increase in India's exports during April, country's trade deficit rose nearly three-fold from $1.29 billion in the corresponding period last year to $3.85 billion. Based on the preliminary data released by India's Commerce and Industry Ministry, exports rose from $5.6 billion in April 2004 to $6.56 billion in April 2005. Imports, which caused a huge increase in trade balance, increased 51% from $6.9 billion in April 2004 to $10.42 billion in April 2005. Oil imports rose 41.37% to $3.29 billion in April against the $2.33 billion recorded in the same period last year. Non-oil imports grew even faster 56% from $4.56 billion to $7.12 billion. On the other hand, a higher non-oil import bill may show that Indian economic expansion is on track.