High non-oil import pushes trade deficit in Q1 to $21.6 bn
The report pointed out that during Q1, the country paid less for each barrel of imported crude oil as the average Indian basket of crude oil prices slipped marginally to $66.3 from $66.8 in the same period last year.
By PTI |
MUMBAI: Higher non-oil imports pushed up the trade deficit to $21.6 billion during the first quarter (April-June) of the current fiscal as compared to $16.9 billion in the corresponding period last year.
"While oil imports recorded a moderate growth of 8 per cent in Q1 of 2007-08 (45.2 per cent in Q1 of 2006-07), non-oil imports recorded a strong growth of 47.4 per cent (8.9 per cent in Q1 of 2006-07)," according to Reserve Bank of India's report on balance of payments released today.
The report pointed out that during Q1, the country paid less for each barrel of imported crude oil as the average Indian basket of crude oil prices slipped marginally to $66.3 from $66.8 in the same period last year.
Despite large merchandise trade deficit, there was no deterioration in current account deficit positon, the report said, pointing out, "higher net invisibles surplus mainly emanating from private transfers, contained the current account deficit at $4.7 billion in Q1 of 2007-08, broadly the same as in Q1 of 2006-07".
Invisible receipts, it added, rose by 27.5 per cent in Q1 as compared to 23.7 per cent in the correspodning period last year. This was mainly due to momentum maintained in the growth of software services, travel earnings, other professional and business services, alongwith steady inflow of remittances from overseas Indians.
The report said that income from tourism increased by 22.2 per cent in Q1 as compared to 19 per cent during the corresponding period last year.
"While oil imports recorded a moderate growth of 8 per cent in Q1 of 2007-08 (45.2 per cent in Q1 of 2006-07), non-oil imports recorded a strong growth of 47.4 per cent (8.9 per cent in Q1 of 2006-07)," according to Reserve Bank of India's report on balance of payments released today.
The report pointed out that during Q1, the country paid less for each barrel of imported crude oil as the average Indian basket of crude oil prices slipped marginally to $66.3 from $66.8 in the same period last year.
Despite large merchandise trade deficit, there was no deterioration in current account deficit positon, the report said, pointing out, "higher net invisibles surplus mainly emanating from private transfers, contained the current account deficit at $4.7 billion in Q1 of 2007-08, broadly the same as in Q1 of 2006-07".
Invisible receipts, it added, rose by 27.5 per cent in Q1 as compared to 23.7 per cent in the correspodning period last year. This was mainly due to momentum maintained in the growth of software services, travel earnings, other professional and business services, alongwith steady inflow of remittances from overseas Indians.
The report said that income from tourism increased by 22.2 per cent in Q1 as compared to 19 per cent during the corresponding period last year.
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