950807

India's trade

deficit seen

widening to

$3.48 bn

BOMBAY: India's 1995/96 trade deficit is expected to widen to $3.48 billion from the previous year's $2.03 billion, the Centre for Monitoring the Indian Economy (CMIE), a Bombay-based independent think-tank, said.

"While imports amd exports have turned out to be higher than we expected, the trade deficit during April-May was on the trajectory," the CMIE said in a report.

"We expect some deceleration in the coming months and maintain our earlier projection of 16 percent growth in exports and 20 percent growth in imports for 1995/96," it said.

"Pressure on India's external sector built up in April and May. Imports grew by 31 percent and exports by 27 percent, resulting in a larger trade deficit of $275 million compared with the deficit of $90 million in the same months of 1994," it said.-Reuter