India spent a staggering $160 billion to import crude oil in 2011—12, an amount equivalent to more than half of the country’s total earnings from exports during the same period, a study has said.

“For the past five years, crude oil imports have been equivalent to about 40 per cent of the country’s total exports. In 2011—12, the figure was at an astonishing high of over 53 per cent,” said Mr Rajkumar Dhoot, President, Assocham.

India’s exports crossed $300 billion in 2011—12, while imports stood at $485 billion.

The maximum imports were of crude oil - about $160 billion, while gold and silver contributed to $60 billion in the last fiscal.

“This is a worrying aspect, since it implies that a major share of the country’s foreign exchange earnings are spent on import of a single commodity,” Mr Dhoot said.

The study said India’s total import bill increased mainly due to high crude oil prices and huge demand for gold and silver during the last fiscal.

However, the chamber said that with crude prices falling in the international market, the equation is expected to change in the current financial year.

“Every fall in the crude oil prices is good news for the Indian economy and for the government’s fiscal situation,” Mr Dhoot added.

Further, the study said, widening trade deficit and rising current account deficit (CAD) are among the main challenges faced by the economy.

Consequently, the trade deficit is estimated to have widened to $185 billion in 2011—12 from $104.4 billion in the previous fiscal.

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