NEW DELHI: India's exports grew by 6.7 per cent to USD 25 billion on weak global demand, mainly in Europe while imports expanded about three times faster, leaving the country with a worrying trade deficit of USD 12.7 billion in December, 2011.

For the April-December period, exports increased by annualised 25.8 per cent to USD 217.6 billion, but inward shipments grew faster at 30.3 per cent to USD 350.9 billion, leaving a trade gap of USD 133.2 billion, according to data released by the Commerce Ministry today.

In December last fiscal, the trade deficit was USD eight billion.

"Not possible...We will fall short of the USD 300 billion export target. The growth will be around 20 per cent or less than that during the last quarter of this fiscal," Ficci Secretary General Rajiv Kumar said.

He said widening trade gap was worrying, as it will go beyond 10 per cent of the country's Gross Domestic Product ( GDP). "The current account deficit might pose a problem. The country is heading towards twin deficit," he said.

As Europe, one of the largest markets for India's merchandise is battling a financial crisis, exporters' body FIEO has said the country's total outward shipments may not exceed USD 280 billion in the current fiscal ending March.

FIEO President Rafeeque Ahmed also expressed concern over rising trade gap. "Increasing trade deficit is a deep cause of concern," Ahmed said adding that rise in exports in earlier months was also due to increasing cost of commodites and metals, including gold.

Source: http://economictimes.indiatimes.com