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Gold drives March trade deficit to 4-month high of $11.79bn

India imported goods worth USD 35.74 billion in March (up from USD 28.39 billion in February) while exporting worth USD 23.95 billion (versus USD 21.55 billion), bringing the monthly trade deficit at USD 11.79 billion (up from USD 6.8 billion), the highest since November 2014.

Gold drives March trade deficit to 4-month high of $  11.79bn

The News International Team

India imported goods worth USD 35.74 billion in March (up from USD 28.39 billion in February) while exporting worth USD 23.95 billion (versus USD 21.55 billion), bringing the monthly trade deficit at USD 11.79 billion (up from USD 6.8 billion), the highest since November 2014.

The increase in the trade deficit was largely due to a jump in gold imports, from USD 4.95 billion versus USD 1.98 billion. The rise in gold imports can be attributed to the recent government easing of the 80:20 import restriction scheme, and ahead of Akshaya Tritiya. Silver imports, too, jumped about 4.5 times, from USD 121.4 million to USD 561.4 million.

Oil imports, too, went up from USD 6.10 billion to USD 7.4 billion, likely a result of some bounceback in international crude prices.

For the full fiscal year 2014-15, imports stood at USD 447.55 billion (down from USD 450.2 billion in FY2013-14) while exports were at USD 310.53 billion (versus USD 314.4 billion).

Full year trade deficit, thus, stood at USD 137.01 billion compared to USD 135.8 billion in FY14.

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