Higher trade deficit due to spurt in global prices:Govt

Trade deficit of USD 117 billion, highest in the last three fiscal years

PTI | December 21, 2011



The government on wednesday attributed the increasing trade deficit, which touched USD 117 billion in the first eight months of 2011-12, to increasing prices of imported commodities, like crude oil.

"The prices of petroleum, fertilisers, gold, edible oil, gems and jewellery have increased. Their demand has also increased. These lead to a higher value of imports," Commerce and Industry Minister Anand Sharma said in the Rajya Sabha.indian economy

Increasing trade deficit - difference between imports and exports - is one of the main concerns among investors about the Indian economy.

Trade deficit of USD 117 billion during April-November 2011 is the highest compared to the corresponding periods in the last three fiscal years. The deficit was USD 119 billion in the entire 2010-11 and USD 109 billion a year before.

Replying to supplementaries during Question Hour, Sharma said historically there has been trade deficit as India is dependent on imports for important commodities like crude oil, edible oils and fertilisers.

The trade deficit is not because of "want of efforts" but due to global economic situation, he said.

Due to recent developments in some petroleum producing countries "oil prices have gone up significantly....impacting our imports," he said.

India imports about 80 per cent of its crude oil requirements.

Sharma said the "deficit will be there" as the country has not yet reached a stage to become self-sufficient in crude oil and fertilisers.

In the recent times, commodity prices have increased significantly amid the global economic scenario, including the ongoing euro zone crisis.

Sharma said efforts were on to double the country's exports by 2014 and its share in global trade in percentage terms by 2020.

He also said efforts were on to increase domestic production of crude oil, edible oils and pulses.

Exports in the first eight months totalled USD 193 billion, while imports were valued at USD 310 billion.

In 2010-11 fiscal, India's exports for the first time crossed USD 200 billion mark.
 

Comments

 

Other News

India faces critical shortage of skin donors amid rising burn cases

India reports nearly 70 lakh burn injury cases every year, resulting in approximately 1.4 lakh deaths annually. Experts estimate that up to 50% of these lives could be saved with adequate access to skin donations.   A significant concern is that around 70% of burn victims fall wi

Not just politics, let`s discuss policies too

Why public policy matters Most days, India`s loudest debates stop at the ballot box. We can name every major leader and recall every campaign slogan. Still, far fewer of us can explain why a widow`s pension is delayed or how a government school`s budget is actually approved. That

When algorithms decide and children die

The images have not left me, of dead and wounded children being carried in the arms of the medics and relatives to the ambulances and hospitals. On February 28, at the start of Operation Epic Fury, cruise missiles struck the Shajareh Tayyebeh school – officially named a girls’ school, in Minab,

The economics of representation: Why women in power matter

India’s democracy has grown in scale, but not quite in balance. Women today are active participants in elections, influencing outcomes in ways that were not as visible earlier. Yet their presence in legislative institutions continues to lag behind. The Nari Shakti Vandan Adhiniyam was meant to addres

India will be powerful, not aggressive: Bhaiyyaji

India is poised to emerge as a global power but will remain rooted in its civilisational ethos of non-aggression and harmony, former RSS General Secretary Suresh `Bhaiyyaji` Joshi has said.   He was speaking at the launch of “Rashtrabhav,” a book by Ravindra Sathe

AI: Code, Control, Conquer

India today stands at a critical juncture in the area of artificial intelligence. While the country is among the fastest adopters of AI in the world, it remains heavily reliant on technologies developed elsewhere. This paradox, experts warn, cannot persist if India seeks technological sovereignty.


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter