NEW DELHI (Reuters) – India’s trade deficit widened to a seven-month high in May as gold imports surged, provisional data showed on Monday, but economists expect newly announced measures to dampen demand for the precious metal in coming months and narrow the shortfall.

A nearly 90 percent annual jump in gold and silver imports saw the trade deficit rise to $20.14 billion last month from $17.8 billion in April.

NEW DELHI, June 17 (Reuters) – India’s trade deficit widened
to a 7-month high in May as gold imports surged, provisional
data showed on Monday, but economists expect newly announced
measures to dampen demand for the precious metal in coming
months and narrow the shortfall.

A nearly 90 percent annual jump in gold and silver imports
saw the trade deficit rise to $20.14 billion last
month from $17.8 billion in April.

NEW DELHI (Reuters) – India’s consumer inflation likely eased for the third straight month in May but remained high enough to be a headache for the central bank, which is under pressure to cut rates again next week after headline wholesale inflation cooled.

India’s consumer inflation likely eased to 9.05 percent in May from 9.39 percent in April, a Reuters’ poll of economists showed.

NEW DELHI (Reuters) – India’s consumer inflation likely eased for the third straight month in May but remained high enough to be a headache for the RBI, which is under pressure to cut rates again next week after headline wholesale inflation cooled.

Consumer inflation likely eased to 9.05 percent in May from 9.39 percent in April, a Reuters’ poll of economists showed.

NEW DELHI, June 10 (Reuters) – India’s finance ministry, the
central bank and market regulators on Monday discussed loosening
rules for investment by foreign sovereign wealth funds in
response to a sharply falling rupee and a wide current account
deficit that are hurting the economy.

Two senior ministry officials, who declined to be named,
said the aim was to attract more capital flows from wealth funds
in Middle East countries. Finance Minister P Chidambaram has
visited the Middle East in recent months to drum up investment.

NEW DELHI/MUMBAI, June 5 (Reuters) – India has increased
import duty on gold by a third to 8 percent as the government of
the world’s biggest buyer of bullion seeks to halt a surge in
demand that threatens to widen a record current account deficit
yet further.

The increase was announced a day after the central bank
acted to force domestic jewellers to buy only on a cash basis
and is expected to slash imports, which had hit 162 tonnes in
May, twice the monthly average of 2011 when they reached a
record.

NEW DELHI (Reuters) – India is likely to raise the cap on foreign investment in sovereign debt by $5 billion soon, two finance ministry officials said on Tuesday, a move that may support the sliding rupee and help fund a high current account deficit.

The rupee fell 4.8 percent in May and was the worst performing Asian currency.

A weak rupee will push up India’s import bill, which could fuel inflation and worsen a current account deficit that was equivalent to a record 6.7 percent of gross domestic product in December.

NEW DELHI, June 4 (Reuters) – India is likely to raise the
cap on foreign investment in sovereign debt by $5 billion soon,
two finance ministry officials said on Tuesday, a move that may
support the sliding rupee and help fund a high current account
deficit.

The rupee fell 4.8 percent in May and was the worst
performing Asian currency.

A weak rupee will push up India’s import bill, which could
fuel inflation and worsen a current account deficit that was
equivalent to a record 6.7 percent of gross domestic product in
December.

NEW DELHI (Reuters) – India imported around 162 tonnes of gold in May, a finance ministry spokesman said on Monday, much more than expected and making further measures from the government to curb demand in the world’s biggest bullion buyer almost certain.

The figure is sharply higher than April, even though it is below an estimate of 262 tonnes earlier in the day from Finance Minister P. Chidambaram which had stunned experts, including the World Gold Council and the Bombay Bullion Association.

NEW DELHI (Reuters) – India imported around 162 tonnes of gold in May, a finance ministry spokesman said on Monday, much more than expected and making further measures from the government to curb demand in the world’s biggest bullion buyer almost certain.

The figure is sharply higher than April, even though it is below an estimate of 262 tonnes earlier in the day from Finance Minister P. Chidambaram which had stunned experts, including the World Gold Council and the Bombay Bullion Association.