The demand of imports coupled with rising international crude oil prices has widened the overall trade deficit in the first half of the current fiscal to $20.3 billion from $11.9 billion a year ago, Reserve Bank said on Tuesday.
Imports rose by 33.1 per cent against an increase of 37.3 per cent in the corresponding period last year due to demand emanating from the vibrant domestic industrial activity, the central bank said in its mid-term review of the annual policy.
Exports during the first half of 2005-06 increased by 20.5 per cent in US dollar terms as compared with 30.8 per cent in the corresponding period of the previous year, RBI said.
Merchandise exports growth of the country surpassed that of most of the Asian countries during this period, it added.