India's likely trade deficit in 2010-11 at $115-125bn: DGFT

KOLKATA: India's trade deficit will widen till March 2011 and is likely to be between $115 and 125 billion, a top DGFT official said in Kolkata on Friday.

"The trade deficit for the year is likely to be anywhere between $115 and 125 billion," Director-General of Foreign Trade (DGFT) Anup Pujari said here today on the sidelines of a CII-organised interactive session.

India's trade deficit rose to $82.4 billion during the first nine months of the current financial year April-December (2010-11).

India's trade deficit was $117.3 billion in 2009-10, down from $118.7 billion in 2008-09.

Pujari said the trade deficit would widen despite our hope to surpass $200 billion export target for the year, but imports are increasing too.

"If our current trend of 36 per cent growth in exports in December remains intact, we will surpass USD 210 billion worth of exports for the year. But, imports were also expected to be at $325 billion," he said.

"Another reason for the widening of the trade gap was sluggish agricultural sector exports caused by a ban on non-basmati rice export and restrictions in cotton exports," he added.

Pujari, however, said the latest dismal IIP numbers will not have any impact for the current year and hoped such industrial production situation would not continue.