India's trade deficit touches historic high of $ 38.1 bn.

With sharp rise in the oil imports bill and merchandise, India's Balance of Payments (BoP) for 2004-05 saw a historic high trade deficit of USD 38.1 billion as against USD 15.4 bn in the previous fiscal.

Current account slipped into a modest deficit of USD 6.4 billion after a three-year span of continuous surpluses.

In the face of fast growing economy, imports outpaced exports by registering a high of USD 118.96 bn during 2004-05 as against USD 80.17 bn in the previous fiscal, while exports grew to USD 80.83 bn (USD 64.72 bn in 2003-04), according to data released by RBI here on Thursday.

While the oil import bill went up by 45.1 per cent, the non-oil import payments were higher by 49.5 per cent.

Reflecting strengthening of domestic industrial activity, the non-oil import growth was led primarily by the imports of capital goods and industrial inputs, RBI said.

The merchandise export growth was significantly above the 16 per cent target set up by the Commerce Ministry, it said.

Invisible receipts surged by 46.3 per cent due to significant growth in travel, transportation, software exports, and other professional and business services.

Sustained buoyancy in travel receipts reflected a rise of 25 per cent in international tourist traffic in India, it said, adding, private transfers, primarily comprising remittances from Indians working overseas, remained sizable at USD 20.9 bn.

Invisible payments grew sharply by 69.8 per cent on account of higher outbound tourist traffic, transportation and business services such as business and management consultancy, and engineering services.