India's trade deficit, which crossed 10 billion dollars in July alone, is becoming a cause of concern for the government, a senior commerce ministry official said.
"Trade deficit is worrying," Commerce Secretary Gopal Pillai told reporters here.
He said if the confidence in the Indian economy is not maintained, trade deficit would prove to be a bigger problem. "If the confidence fails, then the trade deficit becomes a big issue," he said.
India's exports grew to 16.34 billion dollars in July this year, while imports rose to 27.14 billion dollars, leaving a trade gap of 10.79 billion dollars.
For the April-July 2008 period, the trade gap widened to 41.22 billion dollars as exports grew 24.6 per cent to 59.19 billion dollars, while imports reached 100.41 billion dollars.
Growth in exports has been mainly on account of the sharp depreciation in value of the rupee against the dollar. The Indian currency closed at 45.45 to a dollar today. Last week, it had dipped to a two-year low of 46 against the greenback .
Pillai, however, said the rupee would appreciate by early next year.
"Post-December, the rupee is likely to appreciate as the global financial situation is expected to start improving," he said.
Asked if the global slowdown will impact India's export target of 200 billion dollars for the current fiscal, Pillai said the target would be met.
"Rupee depreciation is helping exports... In spite of all the recession if you have a 25 per cent growth in exports in dollar terms, it should be a big achievement," he said.
"Trade deficit is worrying," Commerce Secretary Gopal Pillai told reporters here.
He said if the confidence in the Indian economy is not maintained, trade deficit would prove to be a bigger problem. "If the confidence fails, then the trade deficit becomes a big issue," he said.
India's exports grew to 16.34 billion dollars in July this year, while imports rose to 27.14 billion dollars, leaving a trade gap of 10.79 billion dollars.
For the April-July 2008 period, the trade gap widened to 41.22 billion dollars as exports grew 24.6 per cent to 59.19 billion dollars, while imports reached 100.41 billion dollars.
Growth in exports has been mainly on account of the sharp depreciation in value of the rupee against the dollar. The Indian currency closed at 45.45 to a dollar today. Last week, it had dipped to a two-year low of 46 against the greenback .
Pillai, however, said the rupee would appreciate by early next year.
"Post-December, the rupee is likely to appreciate as the global financial situation is expected to start improving," he said.
Asked if the global slowdown will impact India's export target of 200 billion dollars for the current fiscal, Pillai said the target would be met.
"Rupee depreciation is helping exports... In spite of all the recession if you have a 25 per cent growth in exports in dollar terms, it should be a big achievement," he said.
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