| Trade Figures (Ap11) | |||||
| Exports–The Break-up | Imports–The Break-up | ||||
| Sector | Value ($ b) | (% growth) | Sector | Value ($ b) | (% growth) |
| Engineering | 23 | 94 | Oil | 30.5 | 18 |
| Oil | 14 | 60 | Pearls, gems | 7.5 | 10 |
| Gems &jewellery | 9.25 | 19 | Gold & silver | 17.7 | 200 |
| Readymade garments | 3.6 | 34 | Machinery | 9 | 49 |
| Manmade yarn & fabrics | 1.2 | 30 | Electronics | 7.6 | 71 |
| Cotton yarn & fabrics | 1.5 | 9.1 | Chemicals | 4.5 | 19 |
| Electronics | 2.8 | 69 | Coal | 3.7 | 27 |
| Drugs & pharma | 3.08 | 25 | Iron & steel | 2.7 | -10 |
| Chemicals | 2.9 | 52 | Transport equipment | 2.5 | 34 |
| Plastics & linoleum | 1.5 | 50 | Ores & scrap | 3.4 | 37 |
| Leather | 1.1 | 26 | Vegetable Oil | 2 | 55 |
| Mica, coal & ores | 2.7 | 270 | Resins & plastics | 1.8 | 0 |
| Marine products | 0.6 | 27 | Fertilisers | 1.28 | -28 |
As per RBI’s viewpoint, the large fiscal deficit has been a key source of demand pressures, therefore, fiscal consolidation is critical to maintain inflationary pressure in the economy. The government can support RBI’s efforts to achieve low and stable inflation by re-allocating resources to finance supply bottle-necks in food and infrastructure.
| Outstanding Liabilities and Gross Fiscal Deficit (as % of GDP) | ||
| Year | Outstanding Liabilities | Gross Fiscal Deficit |
| 2009-10 | 53.7 | 5.4 |
| 2010-11 | 49.9 | 4.7 |
| 2011-12 (BE) | 48.5 | 4.6 |
Despite the hike in administered prices of fuel products, RBI still finds an element of suppressed inflation in the economy. As per RBI’s estimates, about 1 per cent of gross domestic product is still to be financed and becomes a major portion of this subsidy Bill. This subsidy Bill will result in inflationary pressure which, according to RBI is a major concern on the part of the government.
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