The RBI, in its annual policy statement for 2005-06, said imports during 2004-05 grew 36.4 per cent as compared to 25 per cent in the previous year.

While the increase in oil imports was even higher at 44.6 per cent (15.7 per cent in the previous year), non-oil imports showed a rise of 33.3 per cent against 28.8 per cent previous year, it said.

Consequently, the trade deficit widened to $23.8 billion compared to $13.7 billion in the previous year, it said.

At a further disaggregated level, non-oil trade balance registered a deficit of $4.8 billion during 2004-05 (April-January) as against a surplus of $1.3 billion in the corresponding period of the previous year, it said.

Non-oil imports, excluding gold and silver, rose by 33.8 per cent compared with an increase of 24.8 per cent in the corresponding period of the previous year. Import of gold and silver grew by 60.8 per cent over and above a growth of 50.9 per cent in the corresponding period of last year, it said.

Imports of capital goods rose by 32.1 per cent against 30.1 per cent in the corresponding period of previous year, reflecting strength of investment demand, it said.