Mubasher: India’s trade deficit widened in June to more than five-year high, on the back of higher prices for imported crude oil, despite the sharp increase in exports, official data revealed on Friday.

India’s trade deficit swelled to $16.6 billion in June from $14.6 billion in the previous month, registering the widest level seen since May 2013 when the trade gap was $19.1 billion, the country’s Ministry of Commerce and Industry said in a statement. This came beyond Bloomberg estimates of $14.4 billion deficit.

However, exports, including petroleum products, chemicals, pharmaceuticals, engineering equipment, jewellery, and gems, jumped 17.75% to $27.7 billion year-on-year in June.

The record deficit figure was attributed to the rise of imports by 21.31% on year to $44.3 billion during the sixth month of 2018, with oil imports surging 56.61% to $12.73 billion.

Moreover, during the second quarter ended June 2018, imports increased 13.49% to $127.41 billion, leaving a trade deficit of $44.94 billion.

Gold imports slipped 3% to $2.38 billion in June from a year ago.