Trade Deficit to Widen This Fiscal: DGFT.

KOLKATA: Country's trade deficit is going to widen in the current fiscal (2010-11) and is likely to be around $115-125 billion, director general foreign trade (DGFT) Anup Pujari said on Friday. He, however, said it would surpass $200 billion of export this fiscal.

"This year we will do more than $200 billion of export. The rate at which imports are increasing now, it will become $325 billion. We are looking at a range of $115-125 billion deficit. Last month export growth was 36%," he told reporters on the sidelines of an interactive session organised by Confederation of Indian Industry.

India's trade deficit was $117.3 billion in 2009-10, down from $118.7 billion in 2008-09. Talking about the commodities those are doing well in the export market, he said gems and jewelleries are topping the chart. "Gems and jewelleries have shown very high increase in export this year."

India imports rough diamonds and export polished diamonds.

"Both in export and import side, gems and jewelleries are contributing more, part of that is because of price effect (as prics have gone up). On engineering and chemicals we are doing well too," Pujari said.

But in agriculture export side the country is not doing very well due to export ban on many items.

"On agriculture side we are not doing well, part of that is because of rice export. We have stopped export of rice other than Basmati rice. So, automatically it has gone down, in cotton there is a restriction and then domestic realisation is so high (in agri commodities) that people are not willing to export it," he said.

Source : timesofindia.indiatimes.com