New Delhi: India's trade deficit widened to USD 13.35 billion in October as exports contracted 5.04 percent and gold imports surged, prompting government to take a relook at shipment norms for the precious metal.
Exports entered the negative zone after a gap of six months during October.
The outbound shipments dipped mainly due to a contraction in exports of major sectors-- engineering, pharma, gems and jewellery.
On the other hand, gold imports jumped manifold (280 percent) to USD 4.17 billion in the month, increasing the trade deficit to USD 13.35 billion as against USD 10.59 billion in October last year.
Meanwhile, the Reserve Bank of India (RBI) said it is in discussions with government to curb gold imports, which have seen a sharp surge in the recent months putting pressure on the current account deficit (CAD).
"With the surge in gold imports which have been witnessed, it warranted a relook. Discussions are still going on between the Reserve Bank of India and the Government of India. Once we know what are the discussions, further views will be taken," RBI Deputy Governor S S Mundra said here.
Exporters attributed the dip in outbound shipments in October to subdued demand in the US and European markets.
"Markets are not getting better. EU is going bad. The numbers are disappointing. The government is also not announcing any measures to help us," Federation of Indian Export Organisations (FIEO) President Rafeeq Ahmed said.
The previous time exports growth was in negative zone was in March, when shipments had declined by 3.15 percent.
Top exporting sectors that registered negative growth in October are engineering (-9.18 percent), pharma (-8.33 percent), gems and jewellery (-2.25 percent) and petroleum products (-0.16 percent).
Overall, imports grew by 3.62 percent to USD 39.45 billion.
During April-October period, exports were up 4.72 percent to USD 189.79 billion, while imports were up 1.86 percent to USD 273.55 billion.
Trade deficit during this period stood at USD 83.75 billion against USD 87.31 billion in the same period last fiscal.
Oil imports in October dipped by 19.2 percent to USD 12.36 billion. Non-oil imports, however, grew by 18.9 percent to USD 27.08 billion.
