Foreign trade policy likely next month: Khullar.

NEW DELHI: The foreign trade policy, to be unveiled next month, will focus on addressing India's trade deficit, which ballooned to USD 185 billion in 2011-12, exerting pressure on the country's current account deficit.

"The expectations are that 2012-13 would be difficult. But, there is a way of dealing with even difficult circumstances, so please leave that to be packaged, to be put together as part of the foreign trade policy (FTP) supplement that will be announced next month," Commerce Secretary Rahul Khullar has said.

The country's imports grew by 38 per cent to USD 485 billion mainly due to high crude oil prices and gold and silver.

Though exports too crossed USD 300 billion for the last financial year, a widening trade deficit is an area of concern for the policy makers.

Commerce and industry minister Anand Sharma has said "current account deficit (CAD) and trade deficit are a challenge".

The minister has said that his ministry would devise a strategy in its upcoming foreign trade policy to regulate and address the growing trade gap.

The country's CAD nearly doubled to $19.6 billion or 4.3 per cent during the Oct-Dec quarter of 2011-12 fiscal.

CAD includes deficit in external trade of goods, services besides net investment income.

On cotton exports, Khullar said that scrutinisation and revalidation of registration certificates, which was issued before the ban on exports was imposed on March 5, will be completed by Tuesday.

"By Tuesday, all 19 lakh bales for which revalidation has been sought would have been issued. Ten lakh bales has already gone," he said.

Source : timesofindia.indiatimes.com