News: India oil import bill at record $43.8bn
(TNN 10/04/2006) New Delhi - India’s oil import bill has hit a record high of $43.8bn during ’05-06, registering an increase of 46.8% due to high global prices. The previous year’s oil import bill was far lower at $29.8bn.
According to official data, oil imports accounted for the largest chunk of India’s merchandise imports of $140bn. While overall growth in imports was 31.5%, growth in oil imports was far higher. The increase in oil import bill during ’05-06 was only on account of high prices, barring a marginal increase in domestic demand.
In comparison, non-oil imports grew by only 25.5% during ’05-06 to touch $96.3bn. According to an official statement issued here on Monday, non-oil imports during the previous year totalled $76.7bn.
Commerce & industry minister Kamal Nath has been emphasising that steep growth in oil imports were the primary reason for India’s trade deficit. The trade deficit for ’05-06 is estimated at $39.6bn as compared to $25.9bn in the previous year. In March ’06 alone, imports stood at $13.8bn, 20.8% higher than $11.6bn in the previous year.
As of now, growing imports and expanding trade deficit are not seen as a cause for concern since the country’s foreign exchange reserves stand at $150bn. Trade deficit is considered usual for an emerging economy with a huge appetite for imported inputs to fuel export production.
As of now, India is doing fine on the export front, crossing the $100-bn mark at the end of ’05-06. In March ’06, exports stood at $10.9bn, registering a growth of $20.6%. As compared to this, exports during March ’05 totalled $9bn. Official data indicates exports of $100.6bn in ’05-06 as compared to $80.6bn the previous year. The growth during ’05-06 was 24.7%, leading to addition of $20bn to the country’s merchandise exports.
In terms of merchandise imports, India touched the $100-bn mark during ’04-05, totalling $106bn. During ’05-06, the import bill expanded to $140bn with a strong growth of 31.5%. Since India’s services trade is estimated at around $100bn, total foreign trade volume now stands at $340bn.
According to official data, oil imports accounted for the largest chunk of India’s merchandise imports of $140bn. While overall growth in imports was 31.5%, growth in oil imports was far higher. The increase in oil import bill during ’05-06 was only on account of high prices, barring a marginal increase in domestic demand.
In comparison, non-oil imports grew by only 25.5% during ’05-06 to touch $96.3bn. According to an official statement issued here on Monday, non-oil imports during the previous year totalled $76.7bn.
Commerce & industry minister Kamal Nath has been emphasising that steep growth in oil imports were the primary reason for India’s trade deficit. The trade deficit for ’05-06 is estimated at $39.6bn as compared to $25.9bn in the previous year. In March ’06 alone, imports stood at $13.8bn, 20.8% higher than $11.6bn in the previous year.
As of now, growing imports and expanding trade deficit are not seen as a cause for concern since the country’s foreign exchange reserves stand at $150bn. Trade deficit is considered usual for an emerging economy with a huge appetite for imported inputs to fuel export production.
As of now, India is doing fine on the export front, crossing the $100-bn mark at the end of ’05-06. In March ’06, exports stood at $10.9bn, registering a growth of $20.6%. As compared to this, exports during March ’05 totalled $9bn. Official data indicates exports of $100.6bn in ’05-06 as compared to $80.6bn the previous year. The growth during ’05-06 was 24.7%, leading to addition of $20bn to the country’s merchandise exports.
In terms of merchandise imports, India touched the $100-bn mark during ’04-05, totalling $106bn. During ’05-06, the import bill expanded to $140bn with a strong growth of 31.5%. Since India’s services trade is estimated at around $100bn, total foreign trade volume now stands at $340bn.
posted by InCar Group Press Room at 22:32
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