However, the trade deficit was $6.16 billion in June 2009-10 from $9.12 billion in the same month previous year. Additionally, exports dropped to $12.81 billion in June from $ 17.73 billion in the same month last year and the declining trend is likely to continue for some more months.

Moreover, exporters” body said that the government cannot increase demand in the global markets but it should give incentives to exporters so that they do not lose orders. Additionally, the Government is slated to reveal Foreign Trade Policy, which spells out the segments of priority in external trade and also gives incentives and disincentives, depending on the country’’s needs.

The demand for gold declined as the prices hovered high between between Rs 14,500 to Rs 15,000 per 10 grams level in the domestic markets, Bombay Bullion Association President Suresh Hundia said. The imports of gold in May stand at 17.8 tonnes.

The imports of Gold have been sluggish so far this year and was at 51.6 tonnes during the period between January-June 2009 as compared to 139 tonnes in the same period last year, the data stated. In January, only 1.8 tonnes of gold was imported however no imports was reported during February and March on account of lack of demand following high gold prices, which were ruling over Rs 15,000 per 10 grams level then.