The government is concerned about the country''s annual trade deficit, which increased by 35.51 per cent to $80.39 billion in 2007-08, from $59.32 billion in the previous year. They are not comfortable with the trade deficit. However, with prices of crude oil rising globally, they have to live with a big trade deficit.
The commerce ministry has set an export aim of $200 billion for 2008-09. The trade deficit increased as the growth in imports exceeded export growth. In 2007-08, the rupee appreciated by nearly 7.6 per cent, wiping out profits of exporters and encouraging imports of goods like capital machinery, raw material and intermediaries. Global crude oil prices increased nearly 53 per cent in 2007-08, which added to the country''s import bill.
The commerce ministry has set an export aim of $200 billion for 2008-09. The trade deficit increased as the growth in imports exceeded export growth. In 2007-08, the rupee appreciated by nearly 7.6 per cent, wiping out profits of exporters and encouraging imports of goods like capital machinery, raw material and intermediaries. Global crude oil prices increased nearly 53 per cent in 2007-08, which added to the country''s import bill.
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