India's trade deficit was $9 bln in April last year. This year almost $9 bln of gold imported in the month of May is itself almost half of our annual requirement of gold. Thus with Indians actively hedging with gold and stocks down for time to come, the larger trade deficit could continue for another couple of months. With the import bill at $40.9 billion for the month, our deficit is running at an average almost equal to our exports just two years ago at $15 bln for May 11. 

Exports are good but still not up for a monthly comparison as Mar 2011 was exceptionally high coming in a good year for exports. However Exports at $26 bln grew 56% year on year. Imports also rose more than 50% at $41 bln with Oil only growing 12%

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