India’s exports continue to rise, but its trade deficit is ballooning. New figures show exports for October rose 10.8% to $19.9 billion. Imports meanwhile increased 21.7% to $39.5 billion. That in turn means the country had a trade deficit of $19.6 billion during the month. October’s deficit is the highest in four years. The government says that if the current pace keeps up the annual trade deficit will reach $150 billion. But while export growth was expected to slow down this year, the government says there are signs imports could also decelerate.
In other news, many Indians may be worried about the falling value of the rupee, but the Reserve Bank has made it clear its exchange rate policy remains unchanged. Deputy governor Subir Gokarn said the rupee was now a partially floating currency and that there was no specific exchange rate target. India’s rupee has fallen more than 9% against the US dollar this year.
And finally, here’s a look at how Indian markets did on Tuesday. The Sensex and Nifty declined in early trade only to recover and end the day with small gains. The Sensex nudged up 7 points to 17,570. And the Nifty gained 5 to 5,289.