New Delhi: India's trade deficit widened to an eighteen-month high in November as demand for machinery and transport equipment soared, bolstering hopes of a sustained recovery in Asia's third-largest economy.
Higher gold imports during the month also helped swell the trade shortfall to $16.86 billion last month, its highest level since May 2013. Gold imports jumped 34 per cent from October to $5.61 billion.
Imports of machinery and transport equipment grew about 40 per cent month-on-month. That augurs well for an economy which is trying to break out of the slowest phase of growth since the 1980s amid a dearth of investment and slack consumer demand.
It will also be welcome news for Prime Minister Narendra Modi who swept to power six months ago on election promises to oversee an economic revival.
Growth slowed to 5.3 percent in the July-September quarter from a 2-1/2-year high of 5.7 per cent in the previous quarter, both well short of the 8 percent level needed to create enough jobs to employ a rapidly expanding workforce.
Also boosting the economic outlook, merchandise exports recovered to post a 7.27 per cent annual growth in November.
The country's exports contribute about 25 per cent to its gross domestic product.
Copyright @ Thomson Reuters 2013
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
