India's trade deficit likely to widen by 39% to $111.6 bn: Citigroup

India's trade deficit is likely to widen by 39 per cent to $111.6 billion during current fiscal, mostly due to lower crude oil prices, financial services major Citigroup said today.

"The trade deficit in 2008-09 will be $111.6 billion against $80.3 billion in the last fiscal," it added.

Trade deficit for April-September was $59.77 billion dollar against $39.09 billion dollar in the corresponding period last year, as per the official data released today.

Meanwhile, banking behemoth Goldman Sachs also said Indian exports are likely to slow further as external demand continues to deteriorate.

Exports in September stood at $13.74 billion, which was 10.4 per cent higher than $12.45 billion during the same month last year. In August country's outward shipments had soared by 26.9 per cent.

"Although the impact of falling exports on the rupee is likely to be offset somewhat by falling imports, pressure on the rupee to weaken in the near term remains, not only due to portfolio outflows, but mainly due to corporates and banks swapping rupee for dollar," it said.

Unless these pressure ease, further weakness of the Indian rupee is likely to continue in the near term, Goldman Sachs said.

Source: EconomicTimes