Trade deficit rises to $15 bn in May 2011

The trade deficit in India has increased to $15 billion in May 2011, according the government data released by the commerce department.

In the same period, the export increased by 57 per cent over $16.53 billion, while the import also surged to a four years high to $ 40.90 billion.

The high trade deficit will result in the current account deficit, which ultimately will weigh high on foreign exchange position.

For a balance in the trade or to reduce the deficit, there must be high export than the volume of import in a country.