India's Trade Gap Widens as Gold Imports Double

By Ed Frankl

India's trade deficit widened as imports jumped, driven by gold purchases, according to government figures published Wednesday.

The country's trade in merchandise showed a deficit of $19.10 billion in April, widening from $14.44 billion in the same month last year, the data said.

The rise in imports significantly outgrew the uptick in exports. Imports jumped 10% to $54.09 billion, propelled by gold imports that more than doubled on year. Imports of oil, pharmaceutical products and electronics also drove up the level.

Exports, meanwhile, edged up 1% to $34.99 billion, with chemicals, electronic goods and petroleum products leading the rise, according to the data.

The larger deficit comes as Indian voters head to the polls in elections widely expected to be won by the party of incumbent Prime Minister Narendra Modi. Modi's term in office has seen improvements to the country's business climate and the U.S. is now India's largest trading partner and a growing provider of foreign direct investment.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

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