India's Trade Deficit Narrows; Exports, Imports Decline In June

India's trade deficit narrowed as imports dipped 13 percent in June. Exports fell 5.45 percent to $25.1 billion in the month while imports declined 13.46 percent to $35.3 billion, a senior official said Friday.

India has a trade deficit of $10.3 billion in June, and the trade deficit is expected to narrow in the current fiscal year that ends March 31, 2013, as compared to the previous fiscal year, director general of foreign trade Anup Pujari told reporters. India's current account deficit touched a record high of $13.26 in the quarter which ended March 31.

The country's overseas trade has been hit by the global economic slowdown and the weak demand from the U.S and European countries. Weak exports and widening trade and current account deficits have been worrying the government which is facing the economic slowdown and rising inflation.

The fall in import figures is partly due to the decline in oil prices as fuel form a major part of India's imports. Gold and silver imports reduced to $1.9 billion from $4.3 billion on a month-on-month basis.

India posted a trade deficit of $184.9 billion in the financial year 2011/12 and its fiscal deficit is projected at 5.1 percent of GDP in the fiscal year 2013.