India's trade deficit fell sharply to $10.56 billion in October, from $20.21 billion a year ago.
A rise in exports and subdued gold imports helped the trade deficit to narrow sharply this October.
India's exports rose 13.47 percent to $27.27 billion in October while imports shrank to $37.83 billion from $44.24 billion a year earlier.
Gold and silver imports dropped to $1.3 billion in October from $6.8 billion a year ago.
India imported $15 billion worth of petro products in October. For the April to October period, the trade deficit stood at $90.68 billion, with exports up 6.32 percent at $179.38 billion and imports down 3.8% at $270.06 billion.
Finance Minister P Chidambaram had earlier exuded confidence that India's current account deficit (CAD) will be contained below $60 billion this financial year as against an earlier estimate of $70 billion. Mr Chidambaram pointed out the recent pick-up in exports and a sharp reduction in gold imports would help to bring the current account deficit lower this year.
The CAD, which is the difference between the inflow and outflow of foreign exchange, had touched an all-time high of $88.2 billion, or 4.8 per cent of GDP, in the last fiscal. The current account deficit has been a major worry why the rupee hit a record low this year.
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