As a result, India's trade deficit with the United Kingdom increased sharply by 260 per cent to Rs 1,118 crore during the year compared to Rs 311 crore in 1996-97.

While India's exports to the UK were estimated at Rs 7,578 crore, showing a growth of 4.28 per cent, imports from the UK were valued at Rs 8,696 crore, representing an increase of 14.75 per cent.

The total volume of trade between the two countries was estimated at 16,274 crore, registering a lower growth of 9.63 per cent compared to 12.97 per cent in 1996-97.

Gold and silver imports accounted for 15.64 per cent of the total imports from the UK. In the last fiscal. Pearls, precious and semi precious stones, which accounted for the highest share of imports of 22.53 per cent or Rs 1,959 crore in 1997-98, recorded a four per cent decline compared to 1996-97.

Apart from gold and silver, import of electronic goods rose 43 per cent to Rs 340 crore during the period. Import of transport equipment also witnessed a marginal increase of four per cent to Rs 230 crore.

Import of project goods declined 52 per cent to Rs 363 crore compared to Rs 751 crore in 1996-97. Import of machinery, metalifiers ores and metal scrap, iron and steel, paper board and manufactures also declined in 1997-98.

In the case of exports to UK, chemical and allied products witnessed an impressive increase of 402 per cent during the year to Rs 291 crore as against Rs 58 crore in the previous year.

Export of gem and jewellery rose from Rs 295 crore to Rs 440 crore, representing a growth of 49 per cent.

The other major items of exports which witnessed an increase during the year were metal manufactures, ready made garments of manmade fibres, cotton yarn and fabrics and handicrafts.

Products which witnessed decline in exports included ready made garments and leather footwear.