Exports up over 11% in July

Exports in July soared by a massive 11.64 per cent to $25.83 billion compared to $23.14 billion in the same month last year. This is the highest growth rate in exports in last 21 months. In October 2011 exports registered a growth rate of 23.7 per cent. Rise in July exports was mainly on account of a falling Rupee coupled with rise in demand in America, Africa and Far-east. 

On the other hand, imports in July reached $38.10 billion, down 6.20 per cent from $40.62 billion in July last year. 

“Continuing interest in Africa, Latin America, Asean (Association of Southeast Asian Nations) and Far East regions is the main reason why exports have risen. We expect this trend to continue,” commerce secretary SR Rao said adding that the measures announced by the government recently would also help in arresting the fall in merchandise exports. 

Total exports during April-July reached $98.29 billion, which was 1.72 per cent higher than $96.63 billion in the corresponding period of last financial year. During April-July imports rose by 2.82 per cent to $160.74 billion against $156.33 billion in the same period last year, according to the data released today. 

Trade deficit in July, therefore, reached $12.27 billion compared to $17.47 billion in July last year. During April-July, trade deficit widened to $62.45 billion as against $59.70 billion in the corresponding period of last fiscal. 

“We expect our exports doing slightly better this year. Although the growth in four months period has been a mere 2 per cent, our target is much higher of 10 per cent for the present fiscal,” Rao added. 

In July export of ready-made garments, pharmaceuticals and textiles have been impressive while that of engineering goods and gold jewellery have fallen. As far as imports are concerned, in July import of pearls, semi-precious and precious stones, transport equipment and fertilisers have risen. However, import of gold and silver, crude and vegetable oil registered a decline, director general of foreign trade (DGFT) Anup K. Pujari said. 

According to M Rafeeque Ahmed, president, Federation of Indian Export Organisations (FIEO), this positive trend in exports is likely to continue with “positive signs emanating from US and EU.”

In July crude oil imports stood at $12.70 billion, down 8.02 per cent over $13.81 billion in the same month last year. Total crude oil import in the fourth month period reached $54.58 billion, up 2.65 per cent from $53.17 billion in the same period of 2012-13.

“We expect this trend in exports to continue as the government did the right intervention at the right time,” said Sanjay Budhia, chairman of CII’s export committee. 

Non-oil imports in July reached $25.39 billion, falling by 5.26 per cent against $26.80 billion in July last year. However, during the first four months non-oil imports rose by 3 per cent to $106.15 billion from $103.15 billion last year same period. 

“The market is US is gaining strength but EU is still under economic stress. Though, we have registered a growth of around 16 per cent in ready-made garment in US and EU markets, our exports diversification in the nontraditional markets and sustained government help has also helped to boost exports,” said A. Sakthivel, chairman, Apparel Export Promotion Council. 

Since the beginning of the fiscal exports have fallen for two consecutive months in May and June when it dropped by 1.11 per cent and 4.56 per cent respectively. 

The rupee touched an all time low of 61.81 against the dollar last week.

Last fiscal the current account deficit (CAD) reached a historic 4.8 per cent of GDP due to a surge in import of gold and petroleum products.

Source - Buisness standard