April trade deficit widens to $17.8 billion, gold imports up 138%

NEW DELHI: The country's trade deficit widened in the month of April to $17.8 billion as compared to $14 billion, up 27.1% year-on-year. While exports were up 1.6% at $24.16 billion, imports rose 10.9% to $41.95 billion year-on-year.

Gold and silver imports were up by 138 per cent to $7.5 billion last month compared to a year earlier, as retail consumers in the world's biggest gold importer went on a buying spree after global prices fell.

Commenting on the rise, Commerce Secretary, SR Rao said, "Gold imports are up substantially in April compared to March." Fall in gold prices may have increased demand, Rao added.

Overall, merchandise imports rose 10.9 per cent to $41.95 billion, trade ministry officials said on Monday, driving the trade deficit up by more than 72 per cent from March.

Oil imports were up 3.9% to $14.1 billion, year-on-year. The government plans to 'consciously' watch the trade gap, Rao said.

The government has set an export target of $325 billion for the current financial year on the back of slowdown in the global markets, Parliament was informed last week.

"Government has set an export target of $ 325 billion for the year 2013-14," Minister of State for Commerce and Industry D Purandeswari said in a written reply to the Rajya Sabha.

The government had set $360 billion export target for 2012-13.

"As per provisional figures, export registered an increase of 0.8 per cent for the month of January after a continuous fall during May, June, July, August, September, October, November and December 2012," she added.