Increasing Trade Deficit of India

January 2012 Trade data is now out. India Trade deficit is increasing and has touched USD149 Billion in the first 10 Months of this fiscal year (FY12). Export Grown by only 10% whereas Import growth was at 20% in the Month of January 2012 as compared to January 2011. Export is USD 25 Billion and Import id USD 40 Billion leading to Trade deficit of USD 15 Billion in one Month itself . India liking of Gold and silver is creating fresh pressure to Trade deficit in addition to the Traditional burden of Crude Oil. Higher Trade deficit is negative to INR and also increase the Current account deficit. India Export continued to be under pressure due to negative Economic condition around the World and more particularly In USA and Europe. In this financial year, in Export side Engineering Goods, Petro Products, Gems & jeweler & Ready mate Garments has done very good whereas in the Import side Crude Oil and Gold Import is the major component