Gold imports which have been falling in the past few months, could not continue the trend and rose to $2.19 billion in May vs $1.75 billion in April.

Oil imports also rose to $14.4 bn vs $12.98 bn (month-on-month). The Trade Secretary said that exports were acquiring their natural level and the export data encouraging. India's April-May exports were placed at $53.63bln.

The rise in the trade deficit saw an immediate reaction in the rupee, which dropped to 59.35 and recovered to trade at 59.32 to the dollar.

Stock markets also reacted to the rise in the trade deficit data and the Sensex was down 90 points.

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