Export growth stalls, trade deficit at 4-year high

India's exports grew by just 10.8 per cent to $19.8 billionin October, the lowest in the last two years, mainly due to the decliningdemand in the US and Europe.

Thegrowth rate has been the lowest since October, 2009, when it contracted by 6.6per cent.

Importsgrew at a faster rate of 21.7 per cent to $39.5 billion leaving a trade deficit of $19.6 billion, the highest ever in any month in the last four years, whichis also due to expensive crude oils and vegetable oils, according to theCommerce Ministry data released on Thursday.

From apeak of 82 per cent in July, export growth has slipped to 44.25 per cent inAugust, 36.36 per cent in September and 10.8 per cent in October.

InOctober, oil imports grew by 20.73 per cent to $10 billion while the non-oilimports rose by 22 per cent to $29.4 billion over the year-ago period.

But, forthe cumulative April-October period, exports aggregated to $179.7 billionshowing a handsome growth of 45.9 per cent, thanks to sterling trend witnessedin the previous months of the current fiscal.

A steadyrise of 30.9 per cent in imports for the seven- month period to $273.4 billionhas left trade gap widening to $93.7 billion.

CommerceSecretary Rahul Khullar has expressed concerns over the increasing balance oftrade and said that at this rate, it may breach $150 billion mark during2011-12.

DuringApril-October, oil imports stood at $81.9 billion, an increase of 40 per cent.The non-oil imports rose by 27.1 per cent to $191.5 billion.