India's trade deficit increased to $6.20 billion in October, up sharply from $2.93 billion in October 2005 as demand for imports in the world's second-fastest-growing major economy outstripped exports.
The deficit during April-October 2006 touched $30.23 billion from $25.19 billion in the same period last year.
India's growth in merchandise exports during October fell to 11 per cent at $9.62 billion compared with the provisionally revised figure of $8.64 billion in the same month last year.
However, imports rose sharply by around 37 per cent at $15.82 billion mainly on account of an increase in crude oil imports.
The government has set a revised merchandise export target of $125 billion for financial year 2006-07. The target is 21 per cent higher than the actual exports of $102.7 billion achieved last year.
According to the provisional trade data released by the commerce and industry ministry today, cumulative exports during April-October increased by 22 per cent to $69.52 billion compared with a provisionally revised figure of $56.92 billion in the corresponding period in 2005-06.
Cumulative imports appear on course to cross $100 billion this financial year. During April-October, imports increased by 21 per cent to $9.75 billion compared with $82.12 billion in the same period the previous year.
An official release said the crude oil imports during October increased by 55 per cent to $5.34 billion compared with $3.44 billion in the same period last year.
Crude oil imports during April-October increased by over 39 per cent to $34 billion against $24.38 billion.
Non-oil imports during October increased by 29 per cent to $10.48 billion compared with $8.13 billion in October last year while the cumulative non-oil imports during April-October increased by 13 per cent to $65.74 billion against $ 57.92 billion in April-October 2005-06.