NEW DELHI(BullionStreet): Asia's third largest economy, India's trade deficit reached a new record at the end of the first quarter this year mainly due to increase in gold and crude oil imports.

Speaking at a news conference here, India's Commerce Secretary Rahul Khullar said gold imports is expected to decline in the current fiscal (2012-13) due to the duties imposed by the government.

The world's largest gold consumer and importer recently decided to double the import duty from 2% and to charge a 0.3% tax on most gold jewelry to cut down imports and consumption.

Gold imports of nearly $59 billion last fiscal significantly contributed to India's trade deficit.

India's merchandise exports rose 21% from the previous year to $303.7 billion, a tad higher than the targeted $300 billion, he said.

But imports rose faster at 32.1% to $488.6 billion, stretching the full year trade gap to $184.9 billion from $118.6 billion in the previous year.

While exports grew 21%, the trade deficit has become serious concern and shot up to $184.9 billion